Crypto takes a step back, ready for volatility

Expert market comment made by senior analyst Alex Kuptsikevich of the FxPro Analyst Team: Crypto takes a step back, ready for volatility
FxPro | il y a 101

Market Picture

The crypto market stumbled on the last day of October, losing over 5.5% in 24 hours as investors turned to profit-taking. The drop coincided with the stock market entering a period of high uncertainty ahead of a mix of influential events: the NFP on Friday, the US election results on Wednesday and the Fed meeting on Thursday.

The total crypto cap rolled back to $2.33 trillion, where the market consolidated in the 10 days to 25 October. While painfully sharp, it fits well with the upward trend that has been building since early September.

Bitcoin has fallen back just below the $70K area, temporarily turning support into former resistance. After an impressive and rather unexpected attack on all-time highs, Bitcoin is now in news-waiting mode, ready to move either way from current levels. There will be no shortage of volatility and sharp reversals. 

At the end of October, bitcoin was up 9.7% at $70K. In terms of seasonality, November is considered a successful month for BTC. Over the past 13 years, bitcoin has ended the month with a gain 8 times, with an average rise of 22% and an average fall of 17%.

News background

Crypto investment firm Canary Capital has filed an S-1 with the SEC to register a spot ETF based on Solana. Solana's advanced DeFi ecosystem ensures sustained on-chain activity, as evidenced by the number of daily transactions and active and new addresses while keeping user fees low, the company said in a statement.

In its Q3 report, MicroStrategy unveiled a plan to raise $42 billion to continue its bitcoin acquisition strategy. Since August 2020, the company has spent $6.9 billion to buy 252,220 BTC.

According to its quarterly report, social network Reddit sold nearly $6.9m of its BTC and Ethereum reserves in the third quarter. The company noted that fluctuations in crypto-asset exchange rates have negatively impacted its financial performance, as has the lack of a clear tax regime for cryptocurrencies.

The growth of the stablecoin market has led to increased demand for short-term Treasury securities, the US Treasury Department said in a report. The department estimates that stablecoin issuers have invested $120 billion in US debt.

31 October marked the 16th anniversary of the Bitcoin White Paper. The technical document described the working principles of the peer-to-peer payment system that went on to revolutionise the world of financial technology. Donald Trump congratulated the crypto community on the occasion.

By the FxPro Analyst Team

Réglementation: FCA (UK), CySEC (Cyprus), SCB (The Bahamas), FSCA (South Africa)
read more
USDCAD, USDJPY, GBPUSD

USDCAD, USDJPY, GBPUSD

Trump’s steel and aluminum tariffs affect USDCAD; US CPI on Wednesday; USDJPY in morning star pattern; UK GDP may see contraction; GBPUSD rises slighlty
XM Group | il y a 22 minutes
Gold: How far can the bulls go?

Gold: How far can the bulls go?

Gold extends record bull run, touches $2,900 psychological level. Overbought signals are evident, but there is support at $2,850-$2,870.
XM Group | il y a 2h 29min
ATFX Economic Calendar- 2025.02.10~2025.02.14

ATFX Economic Calendar- 2025.02.10~2025.02.14

The ATFX Weekly Economic Calendar is a comprehensive resource designed to help traders and investors stay ahead of market-moving events. It outlines key economic data releases, central bank meetings, speeches, and geopolitical events for the week. This calendar provides a strategic tool for navigating global markets, offering insights into potential volatility triggers across multiple asset.
ATFX | il y a 4h 41min
ATFX Market Outlook 10th February 2025

ATFX Market Outlook 10th February 2025

U.S. January NFP: Job growth slowed in January, with the addition of 143,000 jobs, while the unemployment rate fell to 4.0%, leading the Federal Reserve to maintain interest rates until at least June. The three major U.S. stock indices closed lower, with the Dow down 0.54%, the S&P down 0.24%, and the Nasdaq down 0.53%. President Trump announced plans for reciprocal tariffs on multiple countries.
ATFX | il y a 4h 41min
USD up, gold up, Trump may hike tariffs.

USD up, gold up, Trump may hike tariffs.

Last Friday, the US dollar index returned to the 108 mark and ultimately closed up 0.36% at 108.10, as non farm payrolls hinted that the Federal Reserve would continue to pause interest rate cuts and Trump announced the imposition of equivalent tariffs on many countries this week.
CWG Markets | il y a 4h 41min