Crypto Today: Bitcoin eyes return above $65,000 as risk appetite returns to markets, while Ether, XRP struggle
- Bitcoin surged to $65,000 on Sunday, signaling a return of risk appetite among market participants.
- Bitcoin has seen increasing positive correlation with US equities, trades at $62,442 at the time of writing.
- Ethereum and XRP lag with ETH struggling under $2,700 resistance and XRP declining under key support.
Bitcoin, Ethereum, XRP updates
- Bitcoin touched $65,000, a key level on Sunday. The rally in the risk asset is likely a sign of returning risk appetite among traders. Comments from US Federal Reserve Chair Jerome Powell at Jackson Hole confirmed expectations for a potential rate cut in September, which has contributed to optimism among traders.
- Bitcoin sees increasing positive correlation with US equities, per a recent Bloomberg report. This is likely a positive sign for the asset, and a broader rally could see Bitcoin gain alongside US stocks.
- Ethereum has failed to begin its recovery and noted a 13% decline from the $3,000 level in the last two weeks. The $3,000 level is key resistance for Ether, and several factors have contributed to rising selling pressure on ETH.
- Ethereum struggles under $3,000 with eight consecutive days of Ether ETF outflows, what’s next
- XRP slipped under $0.65, a key level for the altcoin, on July 31. Since then the altcoin has traded sideways and hovers around $0.60 early on Tuesday.
Chart of the day
Toncoin (TON) broke out of its upward trend and is likely to extend losses by 8.48% to sweep liquidity at $5.009, the August 26 low for the asset. The Moving Average Convergence Divergence (MACD) indicator shows red histogram bars below the neutral line, implying negative underlying momentum in the TON price trend.
TON/USDT daily chart
A daily candlestick close above $5.680 could invalidate the bearish thesis and signal that the asset sustained its upward trend. TON could rally toward the lower boundary of the Fair Value Gap (FVG) between $5.995 and $6.495.
Market updates
- DeFi protocol AAVE proposes the integration of asset management giant BlackRock’s BUIDL fund.
Aave Labs proposes integrating GHO stability module with BlackRock’s BUIDL https://t.co/jEmooqzk03
— The Block (@TheBlock__) August 27, 2024
- Real-world asset tokenization firm Centrifuge launches lending market in association with Morpho Labs on Coinbase’s Ethereum Layer 2 platform Base.
- Ethereum ETFs see nearly half a billion dollars in net outflows since launch, per data from Farside.
14 trading sessions for the $ETH ETFs and on net, there's been nearly half a billion dollars of outflows.
— ◢ J◎e McCann (@joemccann) August 27, 2024
Once the Grayscale sellers are done, I suspect this reverses. pic.twitter.com/b9AzqqdWNI
Industry updates
- The Maker Protocol completes official rebrand to Sky, with the decentralized stablecoin Dai (DAI) renamed as USDS.
Sky is here.
— Sky (@SkyEcosystem) August 27, 2024
The best and easiest place to get rewarded for saving without giving up control.
Discover the upgraded tokens, new features, and boosted Sky Token Rewards for early sign-ups. Follow this thread for the latest news and updates about SkyLaunch. pic.twitter.com/Qc25KRPzR8
- Analysts at crypto intelligence tracker Glassnode predict heightened volatility in Bitcoin per latest research.
Market speculation remains relatively subdued for #Bitcoin, with investors locking in only marginal profit and losses, and a reset across perpetual swap markets.
— glassnode (@glassnode) August 27, 2024
Historically, periods of quiet and calm market structure are short-lived, and often precede an expectation for… pic.twitter.com/Yy8TTjdbtS
- Meme coin project Floki is the official sponsor of University of Miami Athletics for the 2024-25 Season, per announcement on X.
Floki Announces Partnership for Valhalla as an Official Sponsor of University of Miami Athletics for the 2024-25 Season
— FLOKI (@RealFlokiInu) August 27, 2024
We’re excited to announce a powerhouse multi-year partnership between #Floki and the University of Miami Athletics that’s set to dominate the 2024-25 season!… pic.twitter.com/7t4LIUVFnJ
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
