Bitcoin gained confidence, looking at altcoins and stocks

Market Overview

The crypto market capitalisation recovered by another 1.6% in 24 hours to $3.92 trillion, adding for the second day in a row. This time, Bitcoin even slightly outperformed the market (+2.2%), but still lagged Solana (+5.1%). However, all the top coins have been overshadowed by Cronos over the last couple of days, which added 55% in 24 hours and 137% in 7 days.

Bitcoin is drawing its third rising daily candle, trading above $113K on Thursday morning. The growth of altcoins, coupled with the rise in stock indices, has created an environment of increased risk appetite, while BTC’s decline to $110K has restored its attractiveness to buyers.

Solana rose to $215, adding 18% since Tuesday and reaching its highest level since early February. Technically, the coin managed to stay above the 50-day moving average and continued to record a series of higher local highs, confirming its commitment to the uptrend.

News Background

Amid the background sell-off, there has been an influx of capital into Binance. According to CryptoQuant, $1.65 billion in stablecoins has been deposited on the exchange. Large inflows of ‘stablecoins’ to platforms often precede an increase in demand for cryptocurrencies.

10x Research estimates the probability of Bitcoin reaching $140,000 by the end of the year at only 54%. The pessimism is linked to a slowdown in institutional inflows, large-scale sell-offs by miners, and BTC’s traditional weakness in the third quarter.

BlackRock CEO Larry Fink called Bitcoin a ‘currency of fear’ and digital gold, explaining that it serves as a reliable store of value in times of economic uncertainty.

According to Standard Chartered, Ethereum and companies that own ETH are undervalued. The bank maintains its forecast for Ethereum at $7,500 by the end of the year and $25,000 by 2028.

The FxPro Analyst Team