The world’s largest cryptocurrency experienced an increase of 1.59% in the past 24 hours, reaching a value of $84,355.66, approaching the recent peak near the $85,000 mark earlier this month. At the time of writing, Bitcoin’s market capitalisation increased by 1.57% to $1.69 trillion, while trading volume rose by 2.96% to $33.19 billion, based on available data. Bitcoin dominance decreased by 0.9%, now accounting for 58.6% of the total cryptocurrency market. The second-largest token, Ethereum, represents 11.5% of the market, reflecting an increase of 0.27%. Other cryptocurrencies collectively constitute the remaining 29.9%, which is an uptick of 0.63%. Overall, the cryptocurrency market capitalisation today stood at $2.89 trillion, with a 24-hour trading volume reported at $99.31 billion, according to data.
Bitcoin demonstrated superior performance relative to a stagnant broader market today, largely as a result of a rebound from macroeconomic selling pressures. It demonstrates a robust correlation of 85% with the S&P 500 over a seven-day period, suggesting a common rate-sensitive movement. As Bitcoin experienced a rebound in conjunction with traditional markets, the stabilisation of derivatives activity contributed to the reinforcement of a crucial technical support level, it noted. According to the analysis, the short-term market outlook is as follows: If BTC maintains its position above the $82,500 support level, it may revisit the resistance around $85,000. A key data point to monitor is whether the token “can convert the $84,000-$85,000 supply zone into support after the PCE data release (on Wednesday), or if it gets rejected back toward the $82,500 level.”
Alex Kuptsikevich notes that the crypto market persists in exhibiting low volatility and is tentatively establishing a rebound at the $2.87 trillion mark, following last week’s lows around $2.83 trillion. However, as long as the market remains below $2.90 trillion, it is technically in a short-term downtrend. Kuptsikevich identified Ethereum as the primary token of interest, rather than Bitcoin. He noted that the second-largest token, recording its seventh consecutive week of growth, avoided a relatively deep correction and climbed above 2.7K today. “If the crypto market serves as a leading indicator of global risk appetite, then Ethereum reflects the sentiment prevailing within the crypto space,” he asserts. Overall, he posits that the cryptocurrency market is reaching a state of stability at $2.87 trillion; Bitcoin maintains a consistent range of $82.5K-$84K, while Ethereum has once more surpassed $2.7K. The potential of tokenisation and artificial intelligence may underpin the forthcoming growth cycle.
Riya Sehgal, observes that the crypto markets are experiencing continued pressure due to elevated US Treasury yields, rising oil prices, and the anticipation of an additional Federal Reserve interest rate hike, all of which are impacting risk assets. “Focus now shifts to US JOLTS data today, PCE inflation on Wednesday and the September jobs report on Friday. Stronger labour data could support Fed hike expectations and pressure crypto, while weaker data could ease yields and support risk assets,” she added. According to Sehgal, the crypto market is seeing volatility and repeated rebounds and rejections overall, “but the move remains closer to macro-driven deleveraging and consolidation than a broad sell-off”.
