The crypto market is frightened by calm

Market overview

The crypto market capitalisation plummeted below $3.9 trillion on Monday morning, which is 4% lower than the previous day. Among the top altcoins, Bitcoin is losing less than others, while SushiSwap (-13%) and Dogecoin (-11%) lead the list of outsiders. This contrasts with gold hitting new highs and silver surging since the morning, indicating investors' appetite for safe-haven assets after a period of low volatility.

On Monday, Bitcoin broke through support near $115K, which bears had been trying to push through since 13 September. In recent days, there have been several signals of a shift to a downward trend in the first cryptocurrency. BTCUSD fell out of the upward channel that had been in place since early September, dropped below horizontal support and fell sharply below the 50-day moving average. This combination of negative signals suggests a further decline is likely unless there is a fundamental change in financial market sentiment.

By the start of active trading in Europe, Ethereum had fallen to $4,000, starting the day at $4,500. The price broke through the 50-day moving average for the first time since early July — an alarming technical warning, as the second-largest cryptocurrency fairly accurately reflects signals from the intersection with this curve.

News background

According to SoSoValue, net weekly inflows into spot BTC ETFs fell to $886.7 million, remaining quite impressive. Cumulative inflows since the approval of Bitcoin ETFs in January 2024 have increased to $57.72 billion.

Inflows into spot Ethereum ETFs in the US fell to $556.9 million, bringing cumulative inflows since July 2024 to $13.92 billion.

According to Glassnode, the share of the first cryptocurrency held by hodlers for more than seven years reached a record 14.3 million BTC, up 3% since the beginning of the year and reflecting growing confidence in Bitcoin's prospects.

According to a survey by the MEXC crypto exchange, the share of investors using cryptocurrencies to hedge against inflation rose from 29% to 46% in the second quarter. Macroeconomic instability, weakening national currencies, and inflationary pressures are forcing people worldwide to look for alternative ways to preserve the value of their savings.

ETH developers said the Fusaka hard fork will be launched on the Ethereum mainnet on 3 December after a series of deployments on the Holesky, Sepolia, and Hoodi testnets. A key improvement will be the introduction of the PeerDAS protocol, which could double the network's throughput.