Major cryptos are gradually gaining momentum

Market overview

Having risen steadily for the second day running, the crypto market capitalisation has returned to $2.19T, matching levels seen at the end of last week. Despite the weakened correlation between cryptocurrencies and US equities – and in many cases even a negative correlation – cryptocurrencies have nevertheless attracted buyer interest against a backdrop of a weakening dollar and falling oil prices. Looking at the broader picture, the battle for the 50-day moving average continues, meaning the market has yet to settle on a medium-term trend. Over the past day, popular coins ranged from -2.6% (Cardano) and -2.5% (NEAR Protocol, Stellar) to +2.4% (Basic Attention Token) and +6% (Zcash).

Bitcoin has risen to $64.3K, gaining momentum since Monday, when the bulls provided fairly strong support during the dip to local lows around $62.5K and pushed the price back above the 50-day moving average. For now, optimism is centred more on BTC than on the crypto market as a whole, which is typical of the early stages of a long-term market shift. 

Binance Coin has risen to $600, testing its highest levels in the last two months. The coin has gained around 10% from its lows at the start of July, breaking well above the 50-day MA at the end of last month. Earlier in August, this level had already acted as support; after a test of it, the coin rose for the fourth consecutive day. It may not be difficult for the bulls to push the coin up to $630, but beyond that, it may encounter a cluster of local resistance levels from this year, including the 200-day moving average, from which BNB was sold off at the end of May. 

News background

Hardware crypto wallet manufacturers Trezor and Foundation have warned users about phishing attacks following the Coldcard incident. Fraudsters are sending emails on behalf of the companies and attempting to trick users into visiting fake websites or downloading malware.

Investment firm Hashdex, which manages $1 billion in crypto assets, has announced the liquidation of its spot Bitcoin ETF, launched on 27 March 2024. The company attributed its decision to the fund’s low assets under management and poor trading liquidity.

Mining company American Bitcoin, co-founded by the US President’s son Eric Trump, reported mining 932 BTC in the second quarter, a record high.

BlackRock has introduced 12 tokenised share classes for six European money market funds from its Irish Institutional Cash Series. The tokens are issued on the Ethereum network using JPMorgan’s Kinexys infrastructure. 

Summary: Major cryptocurrencies are recovering: BTC and BNB are strengthening, the market is testing the 50-day moving average, but the trend remains undefined for now.