The crypto market is up today, for a second day in a row, with the cryptocurrency market capitalisation rising by 1.5%, now standing at $3.1 trillion. 99 of the top 100 coins have gone down over the past 24 hours. At the same time, the total crypto trading volume is at $144 billion.
At the time of writing, 9 of the top 10 coins per market capitalization have seen their prices appreciate over the past 24 hours.
XRP recorded the highest increase in this category: it’s up 7.9% to the price of $2.23.
Looking at the top 100 coins, we find that 85 recorded increases, with one of these seeing a triple-digit rise. Rain (RAIN) is up 113% to the price of $0.007829.
Markets have generally seen an increase, prompted by US stock gains and increasing confidence that the US Federal Reserve may cut rates in December.
Fed Governor Christopher Waller noted that there is flood of data incoming, previously delayed by the government shutdown. This makes a December cut appropriate, while “January could be a little trickier,” he said.
The supply accumulated between $106,000 and $118,000 was far denser than in prior cycle peaks. This, per the analysts, produced “a deeper layer of holders now capitulating at a loss.”
“Such a structure implies that one of two outcomes must follow: either a meaningful resurgence in demand emerges to absorb the ongoing distribution, or the market will be forced into a longer and potentially deeper accumulation phase before a sustainable equilibrium can be restored.”
Moreover, Nic Puckrin, crypto analyst and co-founder of The Coin Bureau, noted that “as we head into the [US] Thanksgiving holiday, markets are on a knife’s edge as December rate cut expectations yo-yo dramatically, in a way we rarely see. In just a few days, we’ve gone from just around 30% of market participants expecting a cut on December 10, to over 80% betting on this outcome today.”
“This, naturally, moves markets and explains Bitcoin’s recent recovery from a low of around $81,000 to its current level above $87,000. We could see further upside in the short-term if the market remains positive, especially considering the long/short ratio is currently overbalanced in favor of the shorts, which typically signals a reversal in favor of the longs.”
However, he adds, “any optimism we’re seeing in risk assets is tenuous at best. Rate cut expectations have shifted based on remarks from senior Fed officials, but we haven’t seen any economic data to support this. And what’s clear is that the FOMC finds itself at one of the most divided times in its history. As such, no outcome can be certain until the big day itself.”
Puckrin concludes: “What is more certain, though, is that the Fed holds the key to the market’s end-of-year finale – and its next rate decision will determine whether we get a Santa rally or a Santa dump. As we get closer to December 10, I expect market jitters to continue, and the Fed’s press conference will certainly have traders on the edge of their seats.”
At the time of writing on Tuesday morning, BTC stood at $87,692. The price rose from the intraday low of $85,545 to the high of $89,111. It has corrected somewhat since.
Over the past week, BTC is down 2.4%, trading between $82,175 and $93,403 in this timeframe. It’s also down 22% in a month and 30.7% from the all-time high of $126,080.
A breakout above $90,800 could confirm a short-term reversal and open doors toward $94,000 and $97,000. Then, a close above $97,000 could renew momentum toward the $100,000 level. Conversely, a fall below $85,000 could lead to a pullback towards 82,000 and lower.
Ethereum is currently changing hands at $2,916. The price jumped from the low of $2,792 to the day’s high (until the writing time) of $2,979.
It’s down 3% in a week, seeing a range of $2,680-$3,162 in this period. It also decreased by 26.5% in a month and 41.3% from its ATH of $4,946.
A firm rebound from the $2,750 level and holding above $2,900 could lead to the coin’s return to the levels above $3,000. This could open doors towards the $3,150 level. On the other hand, a drop below $2,700 could push the price lower.
Meanwhile, the crypto market sentiment has seen a notable rise over the past day, though still staying within the extreme fear zone. The crypto fear and greed index stands at 15 today, compared to 10 held for the three previous days.
While the index remains in the lowest territory, this move higher after several days of stagnation still signals a somewhat higher confidence among market participants.
As the new week began, the US BTC spot exchange-traded funds (ETFs) turned red. On 24 November, these recorded $151.08 million in outflows. Therefore, the total net inflow pulled back to $57.48 billion.
However, the US ETH ETFs recorded a second day of inflows with $96.67 million added on Monday. The total net inflow increased to $12.73 billion.
Three of the nine funds recorded inflows, and two saw outflows. Of these, BlackRock was responsible for $92.61 million in positive flows.
On the other hand, the highest outgoing amount was $4.26 million by Bitwise.
Meanwhile, BTC’s lower prices have turned focus on Michael Saylor’s Strategy’s running cost basis. This is because sustained trading below the average purchase price would test balance sheet flexibility following a long accumulation cycle.
Moreover, BitMine Immersion Technologies has doubled down on ETH, adding another 21,000 coins in support of its long-term ETH strategy.
The crypto market has noted an increase over the past 24 hours, and the stock market closed sharply higher on Monday. By the closing time on 24 November, the S&P 500 was up by 1.55%, the Nasdaq-100 increased by 2.62%, and the Dow Jones Industrial Average rose by 0.44%. Markets in general reacted positively with the investors’ increasing confidence that the US Federal Reserve will cut interest rates at its meeting in December.
With the growing talks of the December Fed rate cut, the market has received a push for an upward momentum. Additional positive signals are likely needed to maintain the increases.
