The crypto market continues to send alarming signals

Market overview

The cryptocurrency market capitalisation has fallen by 3.4% over the past seven days to $3.74 trillion, its lowest level in three and a half weeks. The total capitalisation chart continues to record a series of lower lows, signalling a downward trend. A break below the 50-day moving average reinforces this signal, confirming the medium-term downward trend.

The sentiment index, at 46, is easily touching fear territory. It fell to 39 at the start of the day on Saturday, the lowest level since the end of April. Given how often cryptocurrencies are the first to react to changes in investor sentiment, such a dip looks like a harbinger of difficult weeks ahead for stocks.

On Monday morning, Bitcoin briefly fell below $107K, its lowest level since early July. On daily timeframes, BTC is approaching but has not yet entered oversold territory, retaining the potential for further decline. Some support from bulls can be expected around the $105K price point, as this has been a resistance level for many months. This area also appears to be the last line of defence before the psychologically important $100K level, the breach of which could trigger panic selling.

News background

September, along with August, is considered one of the two most unfavourable months for BTC. It has declined nine times in the last 14 years, with an average decline of 12.7% and an average growth of 9.2%. Meanwhile, the last two years have been successful for Bitcoin.

Weekly inflows into spot Bitcoin ETFs in the US resumed, amounting to $440.7 million last week. Total inflows since the approval of Bitcoin ETFs in January 2024 have increased to $54.24 billion.

Weekly inflows into spot Ethereum ETFs in the US also resumed after a noticeable outflow a week earlier, amounting to $1.08 billion. Total net inflows since the launch of ETFs in July 2024 have grown to $13.51 billion.

Spot Bitcoin ETFs in the US have almost caught up with the largest exchanges in terms of trading volume, becoming one of the main ways for investors to buy BTC, according to CryptoQuant.

According to Bloomberg, companies have filed 92 applications with the SEC to launch crypto ETFs in the US. Three exchange-traded funds based on Bitcoin and Ethereum, as well as numerous proposals for altcoins, are among those awaiting approval. Solana and XRP are the most popular.

Voting has ended on a proposal to reduce fees on the TRON network by 60%. According to blockchain founder Justin Sun, the majority of community members approved the initiative.

According to DeFiLlama, the dominance of the stablecoin Tether (USDT) in the stablecoin market has fallen below 60% for the first time since March 2023. The decline could be due to increased competition within the industry and tighter regulatory standards.