Crypto bounces ever lower

Crypto bounces ever lower

Market Picture

Bitcoin continues to move strictly to the side, while the crypto market dynamics generally resemble a bouncing ball, getting lower and lower over time. The local resistance has moved to the $3.20 trillion area, while the lower boundary has remained near $3.10 trillion for the last three weeks. Thus, the market is accumulating risks that we will get a compressed spring effect with a sharp move in one direction in the coming days.

Bitcoin unsuccessfully tested the 50-day moving average near $98.5K on Friday once again, staying under it for the past 19 days but not going below $94.0K. It is noteworthy that the first cryptocurrency held its technical levels on Monday at the opening of financial markets in Europe, while the largest altcoins are losing ground. The latter’s dynamics are likely to be negatively impacted by cryptocurrency exchanges’ trust issues after Friday’s hack of Bybit’s wallet, even though the platform covered ETH’s shortfall relatively quickly.

The tech analysis paints a heavy picture for Solana, whose price has fallen to $157, its lowest since early November.

News Background

According to SoSoValue, net outflows from spot bitcoin-ETFs declined to $559.4 million for the week. In comparison, cumulative inflows since the approval of bitcoin-ETFs in January 2024 fell to $39.56 billion (-1.4% for the week). Net inflows into the ETH-ETF totalled a paltry $1.6 million for the week after a small outflow of $26.3 million a week earlier. Cumulative net inflows from ETF launches in July were unchanged at $3.15 billion.

The Bybit exchange lost $1.46 billion because of the hack. The Bybit CEO emphasised that only one multi-signature cold wallet was affected; the rest of the funds are fine. The attackers used a sophisticated transaction spoofing method to gain full control of the assets.

Venture capitalist, millionaire investor and founder of blockchain company Card1Ventures Gary Cardone announced his complete exit from the XRP cryptocurrency (at $2.71). According to him, he was driven by professional instincts.

Santiment believes that the average rate of return of wallets, the decrease in the number of “sleeping” coins and the volume of available bitcoins on exchanges indicate the rapid growth of the rate of the first cryptocurrency.

The spot Litecoin-ETF proposed by Canary Capital in January appeared on the Financial Services Clearing and Settlement Company’s (DTCC) asset list. Previously, such a procedure preceded the launch of the product.

By the FxPro Analyst Team