Bitcoin seems to be playing the long game again. Traders have started accumulating, but the market isn’t jumping on it yet. BTC has drifted down by 0.7%, settling at $66,300, but it’s not all bad news. The king coin has held a 7% rise over the past two weeks. Meanwhile, Ethereum’s sitting at $2,570, down 2%, but it still bagged a 5.5% climb in the same stretch.
Analysts are whispering about stability, although the price wiggles haven’t made things clear. Still, these movements could be laying the foundation for the next leap.
Stablecoins and Liquidity Surge While Bitcoin Waits
There’s been a massive flow of stablecoins this year, amounting to $38 billion, so liquidity isn’t an issue. Even with Circle’s USDC supply dipping by $1.7 billion, these inflows are keeping the market’s gears turning. They’re outshining the $21 billion that slid into Bitcoin Spot ETFs.
Crypto analysts at 10x Research hinted that traders are watching from the sidelines, waiting for bond yields to settle down. They think that higher bond yields are causing hesitation, but it’s just a pause, not a red flag. “Market’s digesting, not panicking,” said one of their analysts.
Funding rates have popped up to 10%, and the spot prices aren’t moving like expected, which means retail is holding back. Traders are cautious, but no one’s bailing out.
ETF Inflows Cool, But Institutional Interest Stays
Valentin Fournier, an analyst at BRN, pointed to institutional moves. After a week-long run of ETF inflows hitting $2 billion, things have slowed. But it doesn’t mean institutions are tapping out. Fournier said they’re still accumulating at the current price levels.
He noted, “Traders are preparing for a bullish breakout, but consolidation comes first.” Factors like the U.S. election and potential interest rate cuts could stir up big moves. If those pieces fall into place, Bitcoin might pop again.
Bitcoin Hovers Near Support, But Dominates
Alex Kuptsikevich at FxPro brought up a key support level—$66,800. If Bitcoin slips below it, a drop to $65,500 could be next. Even so, Bitcoin’s dominance in the market has jumped to 57.3%, the highest since April 2021, suggesting it’s still the heavyweight champ.
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