Bitcoin’s bullish breakout

Market picture

The crypto market cap rose by 4.7% to $2.4 trillion in the last 24 hours, supported by a surge in top coins. These are the market’s highest levels since late July. Back then, the market stalled around these levels and soon turned lower. This time, the trend is more bullish, as the market has been in an uptrend since early September.

With a gain of around 5%, Bitcoin is generally moving with the market, behind Ethereum’s 5.5% rise, Doge’s 16% jump and Bitcoin Cash’s 10% rise. However, with a price close to $71K, BTCUSD is less than 4% below its all-time high. The first cryptocurrency has spent less than 72 hours in total above its current level.

Technically, Bitcoin has given several bullish signals, from the ‘golden cross’ on 27 October to breaking above previous highs and entering a Fibonacci extension pattern.

News background

According to CoinShares, global crypto fund investments increased by $901 million last week, following inflows of $2.199 billion the week before. Investments in Bitcoin increased by $920 million, while Solana increased by $11 million, and Ethereum decreased by $35 million. Investments in multi-asset crypto funds increased by $2 million.

The ETF Store noted that spot Bitcoin ETFs bought nearly 977,000 BTC ($67 billion), representing nearly 5% of available issuance. If such accumulation rates continue, a repeat of BTC’s record highs is inevitable.

The Ethereum (ETH) to Bitcoin (BTC) exchange rate has hit a 3.5-year low. Since the beginning of the year, the leading altcoin has fallen 30.5% against the first cryptocurrency.

Ethereum co-founder Vitalik Buterin cited volume bloat and the blockchain’s increasing complexity over time as some of the network’s main problems.

Bitcoin is cementing its status as a safe-haven asset against inflation, said billionaire Chamath Palihapitiya, founder of venture capital firm Social Capital. He believes the first cryptocurrency has the potential to replace gold as a rational economic safety net.

The bankrupt FTX has withdrawn its lawsuit against Bybit as part of a settlement that will generate about $228 million for future creditor compensation.