Market Overview
The crypto market capitalisation has remained virtually unchanged over the past 24 hours, hovering around $2.18T. Trading activity in crypto and equity markets is currently at its lowest due to the holiday season. This period also often lays the groundwork for trends in the coming quarters, as market participants reassess the situation ahead of the end of the US financial year in September.
Bitcoin retreated to $63.3K late on Tuesday, where it found support at the 50-day moving average. The leading cryptocurrency has been unable to break away from this medium-term trend line, although the price has remained predominantly above it for almost a month. This line itself is almost horizontal, underscoring the market’s neutral sentiment. Fundamentally, the leading cryptocurrency’s growth is being hampered by a wave of selling from institutional investors, who are actively selling bitcoins to finance their transition to AI.
Binance Coin rose to $620, a two-month high, where it encountered resistance at the 200-day moving average, pulling back to $610 at the time of writing. We regard BNB as a proxy for trading activity in the cryptocurrency market, as it is the native token of the largest trading platform. This coin began August with an uptrend, but unlike Bitcoin, it has maintained this trend to date, steadily widening the gap relative to the 50-day moving average. Today, the 200-day moving average has acted as a barrier to growth, and we are now closely monitoring its subsequent test as an indicator for the entire market. Bitcoin’s role in this regard has been temporarily distorted by institutional selling.
News Background
Large addresses are building up their positions. The number of addresses with a balance of over 10,000 BTC has risen to 90 — a six-month high, according to Santiment. At the same time, balances in small wallets have been declining in August.
Meanwhile, CryptoQuant notes that the balance held by long-term Bitcoin holders continues to fall, despite several spikes in inflows into this category over recent months. This suggests that some holders are continuing to take profits.
Bitmine has reduced the scale of its Ethereum purchases by a third. Over the past week, the company purchased an additional 7,391 ETH, bringing the total amount of Ethereum in its reserves to 5.81 million ETH. To reach its target of purchasing 5 per cent of the Ethereum supply, the company needs to buy nearly 300,000 ETH.
Trump Media reported a net loss of $238 million for the second quarter, mainly due to unrealised losses on cryptocurrencies. The company intends to review its digital treasury strategy and allocate more resources to its core media business, including Truth Social, Truth+ and Truth. Fi.
Keel Infrastructure (formerly Bitfarms) has decommissioned all its US mining facilities in preparation to convert them into AI data centres. At the same time, the company has continued to sell off its Bitcoin reserves.
Standard Chartered has raised its forecast for Chainlink (LINK) to $200 by the end of 2030. The token’s growth potential is estimated at approximately 25 times its current level of around $8. The forecast is based on Chainlink’s potential role as a key infrastructure for tokenised assets.
The FxPro Analyst Team
