Market Overview
The crypto market remains relatively stable around the $2.20T mark. This is a respectable performance, particularly given the weakness in key stock indices and the downward trend in gold. Market capitalisation is hovering around its 50-day moving average, reflecting the ongoing struggle to shift the trend to a bullish one. Top-tier coins are falling, with Solana, Chainlink and SushiSwap showing the best performance over the last 24 hours by holding their prices steady. The sharpest declines were seen in Zcash (-5.3%), Filecoin (-4.6%) and OfficialTrump (-1.6%).
The sentiment index has risen to 29, continuing to climb within the ‘fear’ zone and reaching a new local high not seen since late May. We would remind readers, however, that a return to neutral territory is normal for this index, and it is premature to speak of the end of the bear market until the index has firmly established itself above 50.
Bitcoin is testing a glass ceiling near $65K, without yet saturating sellers and avoiding significant pullbacks. At the end of last week, the price returned to the area above the 50-day moving average and remains anchored near the 200-week moving average, which is itself trending upwards. This is a good sign that the systematic sell-off is coming to an end and will be followed by stabilisation. Although there are risks of a deeper decline due to external factors, the exhaustion of internal drivers of the downtrend and outperformance relative to equities are significant positives that were lacking at the start of the year.
News Background
A modest inflow into US spot Bitcoin ETFs has continued for a second week after eight weeks of significant outflows, totalling $75.7 million.
Weekly inflows into spot Ethereum ETFs in the US have also continued for a second week following eight weeks of outflows, totalling $105.4 million.
According to Coinglass, the Coinbase Bitcoin Premium Index has been in negative territory for 60 consecutive days — an all-time record. The indicator is often used to gauge the sentiment of US retail investors: the lower it is, the weaker the interest in the asset.
Payment giant Visa has unveiled the VSP stablecoin platform for transactions involving ‘stablecoins’, designed for banks and fintech companies. The platform supports the issuance, redemption, custody and transfer of assets within a single interface.
The ECB warns that the growing use of stablecoins could lead to a decline in retail bank deposits. Banks are already losing commission income and payment data due to the spread of such services.
The FxPro Analyst Team
