Crypto Market has cooled Slightly: Total market capitalization dropped 1.6% to $2.21 trillion, with Bitcoin falling below $63K and Ethereum at $2690, both facing key resistance levels. Despite cooling, crypto funds saw inflows of $533 million. In a major win, a US court rejected the SEC’s attempt to classify digital assets on Kraken as securities. Stablecoins hit a record $168 billion, signaling new money entering the market.
Crypto market has cooled slightly
The crypto market failed to grow steadily, with total capitalisation falling 1.6% to $2.21 trillion. This is a
slight correction following the unimpressive performance of the equity market. The Sentiment Index
fell back into neutral territory, losing 7 points on the day to 48.
Bitcoin fell below $63K, losing 1.4% in 24 hours and dropping below its 200-day moving average. Its
too early to tell if this line has become resistance.
Ethereum fell 1.7% to $2690, remaining in the lower half of the range from the July highs to the
August lows. The $2800 area served as strong support on the dips from April to July this year and
now provides important resistance.
Toncoin overnight approached the $5 level, which was the turning point for the early August and May
sell-offs. Although impressive bounces have accompanied the decline, the high volume means that
we must remain negative on the coins near-term prospects.
According to CoinShares, investment in crypto funds rose by $533 million last week, the largest inflow
in five weeks and the third consecutive week of growth. Meanwhile, new Ethereum ETF issuers
continue to see inflows, with $3.1 billion in new money for the month, partially offset by a $2.5 billion
outflow from Grayscale Trust.
A federal court in the Northern District of California rejected the SECs request to recognise digital
assets traded on the US crypto exchange Kraken as investment contracts. This is a significant victory
for Kraken and cryptocurrency users. The exchanges general counsel said the SEC will no longer be
able to rely on its theory that cryptocurrencies are securities.
The combined market value of stablecoins has reached a new all-time high of $168 billion, a figure
that has risen for 11 consecutive months. Dynamo DeFi interprets the trend as a sign of an influx of
new money into cryptocurrency.
Tether has helped 145 law enforcement agencies in 40 jurisdictions recover more than $108.8m in
USDT since its launch in 2014, the company said. The USDT issuer has also voluntarily blocked
more than 1,900 wallets linked to illegal activity.
Luke Dashjr said the decentralised nature of the first cryptocurrency has come under threat. Just two
companies now control more than 55% of the BTC networks global hash rate.
