The crypto market quickly met resistance

Market Overview

The crypto market capitalisation lost 2.8% over the past day to $3.81 trillion. On Monday, the 50-day moving average acted as local resistance. The recovery rebound did not find a solid foundation, as many investors doubt that the risks of sudden trade conflicts will quickly disappear. BNB recorded a 10% drop, while Zcash lost almost twice as much, retreating after a more than 300% rally in the last 30 days. XRP and Dogecoin are down more than 5%.

Bitcoin is down nearly 3% in 24 hours, falling below $112K. In July-September, the first cryptocurrency found buyers on dips in the $108-109K range, and the intrigue of the day is whether it will find them now. Like the crypto market, BTCUSD is trading below the 50-day MA but above the 200-day MA. Consolidation below the long average could be a repeat of the situation at the end of 2021, when a bear market started.

News Background

According to CoinShares, global investment in crypto funds rose by $3.169 billion last week, almost half the record inflow of the previous week. Investments in Bitcoin increased by $2.671 billion, in Ethereum by $338 million, in Solana by $93 million, in XRP by $62 million, and in Sui by $2 million.

The correction in the crypto market led to a large-scale liquidation of leveraged positions, which created conditions for a new phase of growth in crypto assets, according to CryptoQuant. The leverage ratio (ELR), which measures the average leverage of traders relative to reserves on exchanges, fell to its lowest level since 2022.

According to Glassnode, funding rates in the cryptocurrency derivatives market have reached their lowest levels since the 2022 bear market, which often creates conditions for growth.

Santiment analysts suggested that negotiations between the US and China on trade tariffs will soon determine the dynamics of the crypto market. Bitcoin could fall below $100,000.

Strategy bought 220 BTC ($27.2 million) last week. The total assets under management reached 640,250 BTC, worth about $73 billion. A week earlier, Strategy refrained from buying because it was unable to raise capital through the sale of shares.

BitMine bought another 202,037 ETH, taking advantage of the price drop. The company’s total reserves reached 3.03 million ETH, or 2.5% of the cryptocurrency’s issuance.

According to Bloomberg, Hong Kong-based China Renaissance Holdings is in talks to raise $600 million to create a fund focused on accumulating BNB. The fund’s shares are planned to be listed on the American stock exchange.

The FxPro Analyst Team