Market picture
The market capitalisation of
cryptocurrencies rose 5.7% in the last 24 hours to 1,134 trillion. Bitcoin was
the engine of growth, but buyers quickly expanded to some altcoins. Bitcoin is
up 7.6%, Ethereum is up 4.7%, and the top altcoins are up from a modest 1.9%
(XRP) to 9.4% (Litecoin).
Bitcoin briefly topped $29K at the start of
trading on Wednesday. In terms of technical analysis, this is an important
bullish signal as the price closed above its 50-day moving average and above
previous local highs in a sharp move on Tuesday. This move confirms the
breakdown of the downtrend that has been in place for the past two months. The
next target for the bulls is the area between the April and May highs at
$29.4-$30.4K.
News background
BlackRock’s intention to launch a spot ETF
for Bitcoin has boosted institutional investor interest in the cryptocurrency,
according to OrBit Markets. BlackRock filed to launch the crypto fund on 15
June. The SEC has rejected such applications more than 30 times, citing market
problems and a lack of investor protection.
In anticipation of the halving, hoarders
continue accumulating coins, Glassnode noted. Based on the duration of previous
such periods, a return to an all-time high could occur within 8-18 months.
According to Coinbase, it is still
difficult to predict the impact of a bitcoin halving in 2024. The halving could
positively impact BTC’s value, but predicting the impact is speculative.
According to Santiment, Bitcoin outflows
from exchanges intensified in June. By mid-June, the amount of BTC on exchanges
had fallen to its lowest level since February 2018. The trend to store
cryptocurrency autonomously has been dominant since late 2022.
Between 10 and 17 June, the number of new
Litecoin addresses increased by 55% in the run-up to the halving, scheduled for
4 August 2023. The total number of addresses reached a record 200 million,
surpassing the Ethereum blockchain, which has a total of around 180 million
wallets created.
This article was written by FxPro’s
Senior Market Analyst Alex Kuptsikevich.