Market Update 16th Oct 2024
By Manoj Dharra
Cryptocurrency markets were trading higher by 1.5% on Wednesday as the original cryptocurrency heads towards the $69,000 mark on optimism over U.S spot Bitcoin ETF that witnessed a major surge in purchases totaling $1 billion in the last 3 trading sessions.
Bitcoin surged past $67,000 mark today and was trading at $ 68,195 up 4.39% and is now only 9% away from it’s all-time high.
Standard Chartered analysts predict that Bitcoin could approach its previous high of approximately $73,800 ahead of the US presidential election. The analysts also note that the improving odds for Donald Trump’s re-election could create a favorable environment for Bitcoin, as historically, his presidency has been viewed positively by many in the crypto community.
In an analysis titled “The Eye of the Storm,” Glassnode stated that Bitcoin is seeing $0.73B in new capital flowing into the network daily, significantly lower than the $2.97B peak seen in March. The firm says it has yet to record a second wave of capital inflow and demand surge after March, when Bitcoin hit a new all-time high of $73,750.
Additionally, Open interest in Bitcoin futures has reached a one-year high of $38 billion. On October 14, Bitcoin rose by 8% and has gained 11.5% over the past 30 days, significantly outperforming the S&P 500, which rose by just 3.8%. However, some traders express concerns about the risks of increased leverage demand, as excessive open interest could lead to greater volatility and potential cascade liquidations from unexpected price shifts.
Talking about the second largest cryptocurrency Ethereum, it was trading at $2,622 up 1.14% in the last 24 hours. Ethereum remains the top blockchain for decentralized exchanges (DEXs), but its market share has fallen below 40% in Q3, with a 19.6% drop in trading volume compared to the previous quarter. Competition from Solana and Base is increasing, with Solana holding 22% of the market share and Base holding 13%.
Furthermore, Tron entered the top ten DEXs, capturing 2% of the market, driven by meme coins. Ethereum’s market cap dominance also decreased by 3.6%, settling at 13.4%. However, layer-2 solutions are thriving, with daily transactions nearing 10 million, far exceeding Ethereum’s mainnet.
Despite ongoing concerns about Ethereum’s relevance, BlackRock CEO Larry Fink highlighted its growth potential, countering negative sentiments from some industry critics.
You need to login in order to Like
