As a seasoned cryptocurrency analyst with years of experience under my belt, I find myself constantly intrigued by the rollercoaster ride that is the crypto market. Today, let’s take a closer look at Optimism (OP), Cosmos (ATOM), and Apecoin (APE).
Bitcoin (BTC) is flirting with an all-time record high, having reached $73,464 on October 30, only slightly below its peak of $73,750. Yet, in the current trading session, it has shown a minor drop and is currently being traded slightly above $73,200.
In the meantime, Bitcoin ETFs like BlackRock’s IBIT experienced substantial investments, with more than $629 million flowing in a single day due to Bitcoin nearing a new record high. The increase in Bitcoin can be linked to market turbulence caused by pre-election volatility. The total value of the cryptocurrency market saw a minor decrease of 0.07%. Notably, Pauline Shangett, ChangeNOW’s Chief Marketing Officer, commented on the rise in spot Bitcoin investments.
As Bitcoin approaches its maximum value ever reached, investors are seizing opportunities presented by pre-election market fluctuations to move their funds into digital currencies. This is evident from the significant amounts pouring into BlackRock’s IBIT, suggesting that Bitcoin may be becoming a preferred choice during turbulent economic times.
Spot Bitcoin ETFs Register Record Inflows
On Tuesday, Bitcoin ETFs based in the U.S. recorded approximately $870 million in total inflows, which is the third-highest figure since their debut in January. BlackRock’s IBIT spearheaded the growth with a whopping $629 million inflow, followed by Fidelity’s FBTC with an additional $133 million. Bitwise’s BITB saw inflows of $52 million, while Grayscale’s Mini Bitcoin Trust received $29 million. Closing the top five were VanEck’s HODL with $16 million and Ark’s ARKB at $12 million. Conversely, Grayscale’s GBTC was the only ETF that experienced outflows of approximately $17 million on that day.
The sudden increase in demand occurred because Bitcoin nearly reached a record high, but didn’t quite make it, as markets showed increased activity before the upcoming US elections. Investors anticipate an increase in market volatility as the election approaches next week, with many forecasting a potential rise to $80,000 in November, regardless of the outcome. According to Bloomberg ETF analyst Eric Balchunas, investor fear of missing out (FOMO) is expected to cause increased flows into ETFs over the coming days.
Today saw $IBIT trade an unprecedented $3.3 billion, marking its highest volume in the past six months. This is somewhat surprising because Bitcoin increased by 4% today, and historically, ETF volumes tend to rise during market downturns or crises. However, there might be instances where the volume suddenly increases due to a fear of missing out (FOMO), such as what happened with $ARKK in 2020. Considering the recent surge in price, it seems likely that this is the case here, suggesting we may see even more significant inflows throughout this week.
NYSE Arca Wants SEC Nod For Grayscale’s Crypto Index ETF
Grayscale has submitted a proposal to the Securities and Exchange Commission (SEC) for a new Exchange Traded Fund (ETF), which could be listed on the NYSE Arca. This proposed fund, known as Grayscale’s Digital Large Cap Fund, is designed to offer institutional investors easy access to various popular cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and Solana (SOL). The move follows a previous application by Grayscale to convert the fund into an ETF. If successful, this ETF would provide investors with exposure to multiple digital assets, serving as a potential alternative to existing Bitcoin and Ethereum-focused ETFs.
As an analyst, I find myself in a vibrant landscape where new players are entering the game. Specifically, Grayscale’s latest venture will be stepping into the ring with offerings from Hashdex and Franklin Templeton, both of whom have taken the plunge by filing for index ETFs. Furthermore, VanEck, 21Shares, and Canary Capital have shown their intent by submitting multiple applications to list spot ETFs associated with Solana (SOL), Ripple (XRP), and Litecoin (LTC). This dynamic market keeps us on our toes!
Analysts Urge Traders To Be Cautious
Most crypto experts believe that if Donald Trump wins the U.S. presidency, it could spark a substantial increase in cryptocurrency prices. Yet, they advise investors to stay vigilant in the run-up to Election Day due to other factors that might influence market mood. Swyftx’s senior analyst, Pav Hundal, stated that a Trump victory might temporarily boost markets but cautioned about potential volatility before and after the election.
Others, like Derive founder Nick Forster, advise traders to tread carefully in the markets since they’re currently reflecting substantial volatility. There may be a substantial potential gain, but the possibility of a loss is equally great. Forster also recommends that traders brace for significant price fluctuations as the election approaches.
It seems that a rise in call purchases suggests some traders anticipate a favorable market condition, possibly predicting a ‘purchase due to speculation’ situation. However, if the actual election results deviate from these expectations, there could be a swift shift towards ‘selling after the news’ decline.
As a crypto investor, I strongly advise adopting a diversified approach when making investments in this market, rather than blindly buying into a single asset. The market’s volatility is influenced by both domestic and global factors, so it’s essential to spread out the risk. However, I don’t feel too concerned about the timing of trades unless you’re aiming for short-term arbitrage opportunities related to the US election results.
In simpler terms, it seems that the timing of your trades may not have a significant impact in the current market conditions, unless you’re an advanced investor seeking quick profit opportunities based on the outcome of the US election through short-term arbitrage. Keep in mind that the market could experience sudden fluctuations following the US election results. However, the overall trend suggests growth for the underlying market fundamentals.
Bitcoin (BTC) Price Analysis
Despite a slight drop following its surge past $73,000, Bitcoin (BTC) continues to hover above $72,000. Analysts anticipate a substantial upswing as the US elections approach, suggesting that BTC could potentially reach a new peak of $80,000 in November. Analysts from 10x Research are even more optimistic, projecting that Bitcoin could soar to $100,000 by early 2025. This bullish outlook is based on positive market indicators, growing institutional investment, and an increase in Bitcoin’s dominance over other cryptocurrencies.
As institutional investors grow more convinced that Bitcoin is a reliable investment, heavyweights in the financial world like BlackRock are reinforcing this belief. The faith that investors have in this asset can be measured by the success of spot Bitcoin ETFs, which attracted inflows totaling $4.1 billion just in October.
Observing Bitcoin’s price history, we notice a slight dip in the last few trading days. Yet, buyers have successfully maintained the price above $72,000 up until now. After experiencing a significant decrease of 1.98% on Friday, pushing down to an intraday low of $65,660, Bitcoin rebounded over the weekend. It rose by 0.51% on Saturday and an additional 1.22% on Sunday, ending the weekend at $67,972. On Monday, a surge in bullish sentiment led to a 2.63% increase, pushing Bitcoin’s price above $69,000 and settling at $69,761.
On Tuesday, Bitcoin (BTC) soared beyond $70,000, reaching a peak of $73,512 before dipping and ending at $72,627, marking an approximately 4% gain. Despite encountering firm resistance above $73,000, BTC experienced a slight dip on Wednesday, dropping by 0.37% to $72,358. This decline can also be linked to investors cashing in their profits. Currently, Bitcoin is trading around $72,290, and given the Relative Strength Index (RSI) being in overbought territory, some market analysts predicted a minor drop in the near future. This temporary decrease is not surprising. As the US elections approach, markets remain optimistic, which could potentially lead to Bitcoin recovering its losses.
If this week sees favorable election results (Trump winning), Bitcoin might establish a new record high. Interestingly, some experts forecast that Bitcoin could reach $80,000 even if it sets a new high, regardless of the election outcome. This prediction is based on Kamala Harris’s pledge for clear crypto regulations if she’s elected. Currently, Bitcoin’s RSI is above 70, suggesting potential further drops. However, a bullish MACD suggests that buyers are still in control, hinting at a possible strong surge once the elections are over.
Ethereum (ETH) Price Analysis
Once more, Ethereum (ETH) has paused at $2,700, causing its price to dip during the current trading period. As the world’s second-biggest cryptocurrency, ETH has experienced a slight decrease of over 1% in the last 24 hours due to significant resistance it encounters at the $2,700 mark. Since its notable decline of almost 4% on Friday and dipping below an essential support level and the 50-day Simple Moving Average (SMA), ETH plummeted to a low of $2,386 before rebounding to $2,438. However, it regained strength over the weekend, rising by 1.71% on Saturday and settling at $2,480. On Sunday, buyers continued to dominate the market, pushing ETH above the 50-day SMA to $2,505 after an increase of 1.04%. Bullish sentiments saw a significant surge on Monday as ETH increased by 2.43%, moving beyond the 20-day SMA and settling at $2,566.
On Tuesday, buyers held sway, causing ETH to rise nearly 3% to $2,637. It even made an effort to reach $2,700 but failed to surpass a day’s peak of $2,680. Buyers attempted again on Wednesday as ETH climbed to a daily high of $2,721. However, they lost steam due to stiff resistance at this point and retreated, ending the day at $2,659, marking an increase of 0.81%. In today’s session, ETH has slightly declined as sellers aim to push the price below $2,600. If buyers regain control, ETH might challenge the resistance at $2,700 again. Breaking this level could pave the way for a potential advance towards the significant $2,850 level.
Solana (SOL) Price Analysis
Over the past few days, Solana (SOL) has been on a downward spiral, with sellers aiming to drive the price below $170. This bearish trend started on Wednesday when SOL failed to break through the $180 resistance despite a robust recovery over the weekend. The price of SOL had plummeted to $147 on October 17 but bounced back impressively, reaching $177 by Thursday. However, it experienced a significant drop of almost 7% on Friday, falling to $164. The coin showed signs of recovery over the weekend, gaining 3.60% on Saturday and reclaiming the $170 level. On Sunday, SOL saw an increase of 3.42%, pushing its value up to $176 as it attempted to surpass the $180 mark.
Yesterday, Solana (SOL) experienced significant selling pressure, dipping to a low of $172 and then recovering slightly to reach $178, marking a 0.96% increase. On Tuesday, buyers tried to drive SOL above $180 but lost momentum, causing it to slide back below this level and settle at $179. A bearish trend emerged on Wednesday as SOL encountered strong resistance at $170, resulting in a 2.44% decline to $174. Currently, the market is bearish as sellers aim to push the price below $170. However, if buyers regain control, SOL may attempt to retest the $180 level again. A break above this point could potentially propel SOL towards $200.
Bittensor (TAO) Price Analysis
On Wednesday, Bittensor (TAO) dipped beneath $500 and the 50-day Simple Moving Average (SMA), following a continued downward trend. Initially, TAO showed strong bullish signs heading into October, peaking at $682 by mid-month. However, it has since experienced a decline due to heavy selling pressure, dropping below significant thresholds and moving averages. On Friday, TAO saw a substantial decrease of over 10%, falling below the 50-day SMA and $500 to reach $493. Yet, it rebounded on Saturday, climbing more than 5% above $500 again, closing at $512.
On Sunday, volatility surged as both buyers and sellers vied for control over the stock, ultimately resulting in a slight dip for TAO, ending at $510. The volatility continued into Monday, with sellers pushing TAO down to an intraday low of $490. Despite this selling pressure, TAO managed to regain some ground and close slightly higher at $512. On Tuesday, buyers attempted to push the price above $550 as TAO reached an intraday high of $554, but could not maintain the momentum and closed at $520, marking a 1.63% increase. The selling pressure returned on Wednesday, causing TAO to drop below its 50-day moving average and the $500 mark, ending the day at $493 after losing over 5%. As of now, the session is seeing TAO inching up as buyers aim to push the price back above $500 and the 50-day moving average.
Optimism (OP) Price Analysis
During the current trading period, Optimism (OP) has experienced a dip into negative territory on Wednesday after failing to surpass the resistance at $1.80. On Friday, OP saw a substantial decline of nearly 8%, dropping below both its 20-day and 50-day moving averages as well as crucial support levels, settling at $1.55. Buyers made an effort to recover on Saturday but managed only a minimal price increase. However, the recovery gained traction on Sunday, with OP rising over 2% and settling at $1.59. On Monday, OP faced substantial selling pressure and reached an intraday low of $1.53. Despite this selling pressure, it managed to rebound due to robust lower-level demand and saw a rise of 1.52%, surpassing $1.60 and settling at $1.61.
On Tuesday, there was a significant rise in positive investor feelings towards OP, as its value surpassed both the 20 and 50-day Simple Moving Averages (SMAs) following a nearly 5% growth to $1.69. Throughout the day, OP peaked at $1.79 when buyers tried to push it above $1.80, but were halted by strong resistance at higher levels. This caused OP to drop back to $1.71, resulting in a 1.20% increase overall. In the current trading session, OP is showing a loss, with its price dropping nearly 3% as buyers find it difficult to maintain it above the 50-day SMA.
Cosmos (ATOM) Price Analysis
1) The cryptocurrency Cosmos (ATOM) has seen substantial price fluctuations after a 9% drop on Friday, causing it to dip below its 20 and 50-day Simple Moving Averages (SMAs). This volatility started over the weekend when sellers aimed to push ATOM below $4 and buyers sought to counter above the same SMAs. In the end, sellers took control but could only drive ATOM down by 0.95% to $4.37. Buyers made an effort to rebound on Sunday as the price increased by 1.86%, yet it failed to surpass the 20 and 50-day SMAs, ending at $4.45. Volatility resurfaced on Monday when ATOM hit a daily low of $4.27 before bouncing back up to $4.45.
On Tuesday, there was an increase in buying activity which propelled ATOM above both its 20-day and 50-day Simple Moving Averages, closing at $4.53. However, on Wednesday, sellers took control, pushing the price below these moving averages, causing a dip to a low of $4.37 before it ended the day at $4.46. As we move into this session, ATOM continues to show bearish signs, with prices dipping more than 2%, as sellers aim to pull it down towards $4.
Apecoin (APE) Price Analysis
Since the latter part of last week, Apecoin (APE) has been trading within a tight band, ranging from $1 to $1.20. Despite a massive 70% spike during the weekend that pushed it to an impressive high of $1.72, it’s since tumbled significantly, hitting a low of $1.02 on Friday. Sellers have been attempting to push the price below $1, causing considerable volatility. On Saturday, buyers and sellers fought for control, leading to significant fluctuations before eventually closing at $1.06 with a slight increase. APE saw an uptick of over 6% on Sunday as buying activity picked up, reaching $1.12.
On Monday, APE experienced a significant dip, falling approximately 7% to reach $1.04. Despite heavy selling activity, buyers managed to halt any further decline and keep the price above $1. In a positive turn of events, APE rose by nearly 4% on Tuesday, moving up to $1.08. Although APE saw minimal growth on Wednesday, it has once again slipped into negative territory during the current trading session, with prices dropping almost 5% as sellers persist in their efforts to push the price below $1.
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2024-10-31 15:23