The cryptocurrency market has seen a 2% rally in the past 24 hours, reaching a total market cap of $2.34 trillion. This surge follows a slight dip earlier in the day, bringing the market cap to $2.38 trillion, a level not seen since June 20th.
Bitcoin and Ethereum are currently testing their 50-day moving averages after pulling back from the more significant 200-day MA. A recent correction and subsequent upside reversal suggest that levels like $63,000 per BTC and $3,500 per ETH may not pose strong resistance, but rather a temporary shakeout of positions.
Recent data from CoinShares reveals that crypto fund investments increased by $1.439 billion last week, with Bitcoin receiving $1.347 billion, Ethereum $72 million, and Solana $4 million. Ethereum saw its largest inflows since March, possibly in anticipation of the approval of spot ETH ETFs in the US.
Despite the rise in investments, weekly trading volume remained low at $8.9 billion, significantly below this year’s average of $21 billion.
BlackRock CEO Larry Fink has expressed confidence in Bitcoin as a legitimate investment during times of uncertainty, citing its independence from national control.
Bitcoin miners added $71,000 BTC to their wallets last week despite price declines, with the 30-day coin accumulation rate reaching its highest level since April 2023. Retail traders have reduced their long positions, a trend that could support a long-term bullish market.
A wallet that had been inactive for nearly 12 years recently moved 1,000 BTC, valued at approximately $60 million.
Analysts suggest that Ethereum may outperform other assets due to growing institutional demand, with expectations for the approval of spot Ethereum ETFs in the US. Bernstein recommends investing in companies within the cryptocurrency mining sector, citing favorable economic conditions.