The crypto market rebounds sharply, but what's next?
Market picture
Crypto market capitalisation has risen by 13% over the past seven days, although there was no significant change over the weekend. This generally looks like a rebound after a drop. Only a rise above the local highs of $2.85 trillion will signal an upturn.
Market sentiment has moved out of the ‘extreme fear’ area into the ‘fear’ area, reaching 31. The index has been in the range of 18-45 for the last seven days, showing positive dynamics and supporting the improvement of market sentiment.
Bitcoin came close to the $85K level, making attempts to break through the 50-day moving average. A sustained consolidation above this level will be an important signal of a trend change. For long-term traders, overcoming the 200-day average, which is directed upwards and passes through $87,500, will be a more reliable reference point.
News background
Net outflows from spot Bitcoin ETFs quadrupled last week to $713.3 million, continuing for the second week in a row, SoSoValue notes. Cumulative inflows since Bitcoin ETFs were approved in January 2024 fell to $35.36bn.
Outflows from spot Ethereum-ETFs in the US have now lasted for seven consecutive weeks, reaching $82.5 million in the past week. Since the ETF's launch in July, cumulative net inflows have fallen to $2.28bn.
At the end of the first quarter, BlackRock's total crypto assets under management were $50.3bn, equivalent to about 0.5% of its $11.6 trillion in total assets.
The New Hampshire House of Representatives has approved a bitcoin reserve bill. If the Senate and governor approve the document, up to 5% of the state's funds will be dedicated to precious metals and BTC investments. In North Carolina, lawmakers proposed using cryptocurrencies as a means of payment.
Author
Alexander Kuptsikevich, a senior market analyst at FxPro, has been with the company since its foundation. From time to time, he gives commentaries on radio and television. He publishes in major economic and socio-political media.
