Crypto market climbs out of the pit

By Alex Kuptsikevich

Market Picture

The crypto market rallied solidly by 3% to $2.15 trillion, gaining further momentum after the Fed's decisive rate cut. Increased risk appetite in the markets after the Fed's decision helped cryptocurrencies hit highs over the past three weeks. The crypto market has been moving within a downward corridor since mid-March, and only a surpassing of the recent $2.25 trillion peaks could change this trend.

Bitcoin has reached the $62K level. That's an impressive 19% gain since the lows in early September, but only +7% in 7 days and less than +2% in 30 days. The downtrend has been in place since March, and the previous peak of around $64K roughly coincides with the 200-day moving average. We assume that Bitcoin may encounter serious resistance at this level, overcoming which would clear the way up.

Ethereum has shown a promising rebound from its 200-week average, ending the week in positive territory. From current levels above $2400, significant resistance is unlikely to be encountered until the $2800 area, near the 50-week average.

News background

Bitcoin balances on centralised platforms have fallen by around 15% since the start of the year to 470,000 BTC. That's the lowest since 2016, CryptoQuant noted, potentially easing selling pressure.

The bitcoin market has seen a general decline in demand and activity from investors. At the same time, the prevailing sentiment is to hold coins. This "equilibrium" position has coincided with an increase in the capitalisation of stablecoins, which creates a compressed spring effect for the bitcoin price, Glassnode notes.

The Republican congressmen said in a letter to agency head Gary Gensler that the SEC should clearly define airdrops. The SEC has previously said that airdrops could be considered a "sale or distribution of securities."

Cryptocurrency exchange Bitget and fund Foresight Ventures announced a $30 million acquisition of Toncoin (TON) coin from large holders. The investment will be used to develop the TON blockchain and other Telegram-based projects, including clicker games such as Notcoin and Hamster Kombat.

About the author

Alex Kuptsikevich is a financial market professional with 16-years’ experience and a senior financial analyst at FxPro. He is the author of daily reviews on the impact of economic events with comments featured in top international and Russian media. Alex covers fundamental analysis, global markets, the foreign exchange market, gold, oil, and cryptocurrencies in his analytical pieces. As the senior financial analyst at FxPro, Alex is a guest expert in 1-tier global media such as Forbes, Coindesk, Euromoney and Morning Star.