Accumulation in Bitcoin, Ethereum
|Market picture
Crypto market capitalisation has adjusted 0.65% in the past 24 hours to 1.17 trillion, remaining near the highs since early May. The correction is primarily due to a 0.55% dollar strengthening over the same period. The current dynamic is still a halt after a 16% rally but not a correction.
Bitcoin is frozen at $30K, a significant technical level.
These levels were pivotal for the first cryptocurrency in April, and last May it took more than a month for the bears to sell the rate lower. Also, a furious part of the crypto rally started from this level in early 2021. It's worth being prepared for quite a long consolidation, but this week's bullish breakout suggests that long-term investors have already moved to accumulate Bitcoin on drawdowns.
Ethereum's dynamics are settling into a general uptrend channel with buying on downturns, roughly repeating the dynamics we've seen for 2019 and 2020. It could take months before a FOMO rally.
News background
Gemini cryptocurrency exchange co-founder Cameron Winklevoss announced a new phase of bitcoin hoarding. He says, "Anyone watching the flow of ETF bids understands that now is a good time to buy BTC before the ETFs hit the market.
Eight founder Michael van de Poppe sees $28.5K as an excellent level to buy before Bitcoin moves towards $40K. He noted that the BTC dominance index is approaching meaningful resistance, which should lead to Bitcoin consolidation and a shift in market attention to altcoins.
Valkyrie Investments has applied to the SEC to launch an exchange-traded fund (ETF) based on the Bitcoin spot price. BlackRock, WisdomTree, Invesco and Bitwise had also previously applied to establish a spot bitcoin ETF.
Singapore has approved a digital token licence for Ripple, allowing the company to expand its platform for cross-border payments in XRP.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.