Crypto has reached May’s max, aiming higher

Market overview

The cryptocurrency market has risen by 0.75% over the past 24 hours to $2.68T, trading close to this week’s highs. Judging by intraday movements, the market is poised for further growth, as investors actively buy up local price dips. While the major cryptocurrencies have stabilised near their highs of recent months, buyer interest has shifted towards altcoins. Over the past day, the top gainers were Official Trump (+27%), Uniswap (+6.7%) and Solana (+6.3%). The biggest fallers were SushiSwap and IOTA (both down 2.3%) and Immutable (down 1.8%).

The sentiment index continues to hover just below the extreme-greed threshold, a level we last saw consistently from May to August last year. Spikes in the indicator in January and May were short-lived or failed to sustain levels above the 50-mark. We are therefore observing an important confirmatory signal of a shift in sentiment from bearish to bullish. 

At the time of writing, Bitcoin is trading just below $80K, but during a period of reduced liquidity ahead of the start of the Asian session, the price spiked to near $81.5K, setting a new high over the past three and a half months. It was near these levels in May that the leading cryptocurrency formed a local rebound peak, so it is logical to expect consolidation at this level for 5–10 days, though it may take longer. The next stage of growth is expected to be the $90K region, where BTC has held steady for two months since the end of November last year.  

News background

Inflows into US spot Bitcoin ETFs have continued for eight consecutive trading sessions. During this period, investors have poured $2.8 billion into the funds, bringing the total inflow to $54.7 billion.

Concerns over US government debt are driving investors towards alternative savings options such as Bitcoin and gold, according to BlackRock. The recent rise in BTC is consistent with the cryptocurrency's cyclical nature.

The US authorities have transferred 24,408 BTC, worth approximately $1.91 billion, from a wallet containing assets confiscated from the bankrupt crypto exchange FTX. The transfer of assets does not necessarily indicate an impending sell-off, though Arkham does not rule it out.

The UK has announced plans for the Bank of England to facilitate the development of payment systems and new forms of digital money, including stablecoins. The regulator’s primary focus will remain on financial stability.

A survey by the National Institute on Retirement Security found that 53% of Americans oppose employers offering cryptocurrency as a means of saving for retirement. Only 6% of those surveyed fully support using such an asset to build up retirement savings.  

Summary: The crypto market is at $2.68T (+0.75%), with BTC at $80K and altcoins rising. ETF inflows hit $2.8 billion over 8 sessions, while BlackRock views BTC as a hedge against US debt risks.