Crypto market at $2.23T: A bullish pause above the 50-day MA

Market overview

The crypto market has stabilised at levels around $2.23T, remaining there for the second day running. The market is in a fairly bullish consolidation above the area of previous local highs and the 50-day moving average, signalling a smooth transition to a bull market: without dizzying rallies, but with a steady upward trend. The major cryptocurrencies are generally holding their ground, while there is a greater tendency towards profit-taking among the weaker altcoins. The top gainers over the past 24 hours were Theta Network (+2.3%), Stellar (+1.9%) and Zcash (+1.8%). The biggest fallers were Bitcoin Cash (-5.6%), Aave (-3.1%) and Polkadot (-2%).

Bitcoin has settled down, consolidating above $64K and the 50-day moving average, but lacks the momentum to break through $65K. This lull is not yet a cause for concern. The market is likely geared towards cautious buying of the leading cryptocurrency at current levels, forming a bottom that could hold for many months or even years to come. As always, there is a risk of a sudden sell-off amid financial market shocks, which could send BTC or global stock indices into a tailspin, but waiting for such moments is a thankless task. In such conditions, buying in a quiet market at less than half of peak levels looks like a perfectly reasonable tactic for the coming days or weeks.

News background

Current on-chain data for Bitcoin suggests there are no signs of a global panic sell-off. BTC reserves on exchanges continue to decline, reflecting long-term accumulation by ETFs and institutional investors. Whale activity remains high and warrants monitoring in the coming weeks, according to XWIN Research Japan.

Ripple continues to reduce the supply of its dollar-pegged stablecoin, RLUSD. The company has burned a further 10 million RLUSD, reducing the supply by approximately 20% compared to its peak in May.

The largest US depository, DTCC, which holds securities worth over $114 trillion, is beginning to test the tokenisation of shares and US Treasury bonds. Around 40 major financial institutions are participating in the project, including JPMorgan, Goldman Sachs, BlackRock, Vanguard and the NYSE.

Japan has recognised crypto-assets as financial instruments. The country’s parliament has passed amendments to the Financial Instruments and Exchange Act, which bring cryptocurrency regulation under investment legislation. The main provisions will come into force within a year of publication.

In Pakistan, religious scholars have ruled that cryptocurrency purchases are impermissible under Sharia law. The fatwa contradicts Pakistan’s plans to introduce cryptocurrencies. Earlier this year, the country’s authorities passed a law on digital assets.

Summary: The crypto market is consolidating around $2.23 trillion, with BTC holding above $64K. News is sustaining institutional interest, but regulatory risks remain.