October 12th Cryptocurrency Market Update

 

October 12th Cryptocurrency Market Update

[Bitcoin Decline]

Bitcoin broke through the five-month high of $57,000 in the last 24 hours, moving toward the next resistance line of $60,000.

Investor sentiment has improved significantly with the recent rally. According to Alternative's 'Crypto Fear and Greed Index', the index recorded 71, indicating a “greed" stage. Last week, the index was in the "neutral” stage (54) and last month, it was in a "fear" stage (31). The index closer to O indicates extreme fear in the market, and closer to 100 indicates extreme optimism.

On-chain data is also positive. Crypto data analysis company Santiment tweeted, “Addresses with 100-1,000 BTC accumulated 85.7k BTC beginning at the late Sept. bottom. These whales hold 21.3% of supply now, their largest of all time.

In addition, crypto mining company Luxor Technology said in a recent report that the Bitcoin hash rate is expected to hit an all-time high and that China's FUD has virtually become meaningless. The report predicted that the network's hash rate will reach 185 exa hashes/second in the fourth quarter, an increase of 33% from the 139 exa hashes/second on October 7th.

After the recent rally, the market expects an inflow of institutional funds, Soros Fund's purchase of BTC, and the U.S. Securities and Exchange Commission's (SEC) approval of Bitcoin ETF by the end of this year. Bloomberg reported the previous day that the SEC may approve a total of four Bitcoin ETF within this year. Last week, SEC Chairman Gary Gensler said at a congressional hearing that he had no intention of banning cryptocurrency and that the department is currently considering approving Bitcoin ETF.

JP Morgan has also recently mentioned the three catalysts that are currently driving the rally in a note to Business Insider. JP Morgan's market analysts cited the growing belief that it is a better means of hedging tool than gold, SEC chairman Gary Gensler's recent remarks that the U.S. will not follow China's cryptocurrency regulations, and the increase in users of the Lighting Network along with El Salvador's adoption of the coin as legal currency as reasons for the surge.

[New York Stock Exchange) 

The New York Stock Exchange fell as oil prices rose sharply on fears of inflation.

On the 11th (EST), the Dow Jones Industrial Average closed at $34,496.06, down 250.19 points (0.72%) from the previous day. The Standard & Poor's (S&P) 500 index closed at $4,361.19, down 30.15 points (0.69%), and the tech-heavy NASDAQ index closed at $14,486.20, down 93.34 points (0.64%).

[Expert Opinion] 

According to crypto media outlet The Daily Hodl, cryptocurrency trader and technology analyst DonAlt said, “As long as we're holding the lower $50,000s, even the short timeframes look stupidly bullish” regarding the price outlook. He added that the strong outlook will be nullified if it falls below $44,000" but that he expects it to keep rising.

Pantera Capital's CEO Dan Morehead said in a recent letter that the brutal bear market, where it plunged more than 80%, is now in the past.

He claimed that it has now entered the post-halving era and will no longer follow the extreme volatility of previous market cycles. Earlier in August, Morehead said in an interview with Reuters that prices could rise to $90,000 by the end of this year, $120,000 within a year, and reach $700,000 within the next decade.

[Disclaimer]

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