Categories: Crypto Review

Bitcoin risks falling out of range

Market picture

Crypto market capitalisation fell 0.8% overnight to $1.20 trillion. Bitcoin loses 0.9%, Ethereum – 1.7%, while top altcoins performance varies from -5.8% (Solana) to -0.3% (BNB). 

In contrast to the positive performance of stock indices, which updated multi-month highs, the first cryptocurrency rolled back below 30k on Monday. Early attempts to raise the price have been unsuccessful, leaving Bitcoin near the lower end of its four-week trading range. A failure of current support at $29.8K opens the door to a deeper correction at $28.6-28.8K, the 50-day moving average and 61.8% of the rally from the late June lows. 

CoinShares said crypto fund investments rose by $137 million last week, the fourth consecutive week of inflows. Bitcoin investments increased by $140 million, while Ethereum investments fell by $2 million. Investments in funds that allow shorting of bitcoin decreased by $3 million. 

Fund inflows over the past four weeks totalled $742 million, the largest inflow since the last quarter of 2021. Trading volume rose to $2.3 billion for the week, well above the annual average of $1.4 billion, CoinShares noted. 

News background

Former Securities and Exchange Commission (SEC) official John Reed Stark said it was too early to celebrate Ripple’s victory in its legal battle with the US regulator. 

He said the court’s decision was based on “shaky ground” and that SEC officials would successfully appeal.  

Australian banking group National Australia Bank (NAB) has banned customers from making payments to cryptocurrency exchanges and platforms, describing the transactions as high-risk. 

Binance, the largest exchange, has integrated Lightning Network’s Layer 2 Bitcoin network solution to reduce fees and increase the speed of initial cryptocurrency transactions. The Lightning Network integration could be an important step towards mass adoption of BTC. 

The G20 Financial Stability Board (FSB) has recommended a global cryptocurrency regulatory framework. The FSB called for stricter rules to protect the assets of cryptocurrency customers. Large firms will be required to separate some of their activities and functions.

The FxPro Analyst Team

The FxPro Analyst Team

Our team consists of financial market experts. Our dedicated professionals prepare reviews on the foreign exchange market situation, Crude Oil, Gold and Stock Indices. All the analysts are regularly published in the world leading economic media.

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