The crypto market attracts money, but prices don’t rise. Crypto Market Overview: The crypto market capitalization slightly increased to $2.07 trillion, yet struggles with resistance at $2.15 trillion. Despite record stablecoin growth and Bitcoin’s rising dominance, Litecoin faces persistent selling pressure. Explore the current market trends, Bitcoin’s dominance, and the implications for future price movements
Switch to FXPRO today for an unrivaled trading experience in the crypto market.
The crypto market attracts money, but prices don’t rise
On Monday morning, the crypto market capitalisation stood at $2.07 trillion, up slightly from $2.05
trillion a week earlier. In the previous two weeks, the market failed to rally above the $2.15 trillion
level, which has become a local resistance. The weakness in the crypto market undermines our
confidence in a global recovery in risk appetite, even though last week was the strongest week for US
equity indices in many months.
Interestingly, the sell-off from local resistance in the crypto market over the past two weeks has been
accompanied by a surge in stablecoin capitalisation to new records after a prolonged sideways period
from April to the end of July. Typically, the growth in stablecoin volume coincides with the bullish
phase of the market. The crypto whales buy on dips, and it is clear from Bitcoin’s dominant dynamics
that their focus remains on the first cryptocurrency, whose market share has risen to 56.5% – the
highest since April 2021.
Litecoin’s dynamics illustrate what is happening in cryptos, except for the largest coins. Again, it’s
mostly selling on growth. Litecoin fell sharply below its 50-day moving average in April and has been
selling off on approaches to this line for the past four months. On Sunday, this downtrend touched
again at around $67. An intensification of the negative trends could send the price to $56 (the area of
the previous uptrend reversal) or even trigger a major liquidation with a slip below $50.
News background
According to SoSoValue, the spot bitcoin-ETFs saw modest total inflows of $32.6 million last week
after two weeks of outflows. In contrast, the Ethereum-ETF saw net outflows of $14.2 million last
week, with net outflows of $0.42 billion since the products were approved, compared to $17.37 billion
for Bitcoin ETFs.
According to Bitcoin Magazine, nearly 75% of all Bitcoins in circulation have been inactive for more
than six months, reflecting a hoarding trend. Factor LLC CEO Peter Brandt said Ethereum on the
four-hour chart is ‘signalling’ a possible drop to $2,000 or even lower.
Bernstein gave shares of mining companies Riot Platforms, CleanSpark, IREN and Core Scientific an
Outperform rating on the market. The IMF proposed an 85% increase in energy tariffs for bitcoin
miners globally, which could significantly reduce carbon emissions.
Artificial intelligence-related crypto projects could fail due to the potential ‘collapse of the bubble’ in
the sector, according to Blockcircle. AI in cryptocurrency is ‘largely fashionable,’ although there has
been little real-world application of neural networks in the crypto sphere.
The absence of US Democratic presidential candidate Kamala Harris from the Crypto for Harris event
has led the community to question her support for the crypto industry.
Chainalysis noted that attackers stole cryptos worth nearly $1.6 billion in the first half of the year,
increasingly targeting centralised exchanges (CEX). The figure nearly doubled compared to the same
period in 2023.
