Market Update 17th October 2024
By Manoj Dharra
The cryptocurrency market has witnessed a significant surge in recent days, with the total market capitalization increasing by over $200 billion. The driving force behind this rally has been the sharp rise in Bitcoin (BTC), which spiked above $68,000 due to a wave of FOMO (fear of missing out) trades. This has pushed Bitcoin’s dominance to 58%, signaling its continued strength in the market.
One of the primary catalysts for Bitcoin’s recent price action has been the aggressive buying by US-based spot Bitcoin ETFs. In just the past four days, these ETFs have purchased over $1.5 billion worth of Bitcoin, with BlackRock’s IBIT leading the charge. On Wednesday alone, the net cash inflow into US spot Bitcoin ETFs reached an impressive $458 million, reflecting heightened institutional interest.
On-chain data provided by CryptoQuant further supports this bullish momentum. According to their analysis, new Bitcoin whale investors now control approximately 1.97 million coins, marking a massive 800% spike year-to-date. Santiment, which recorded 11,697 whale transfers involving at least $100,000 on Tuesday—the highest in over 10 weeks—echoed this surge in whale activity. As a result, the supply of Bitcoin on centralized exchanges has dropped to a five-year low, signaling a strong accumulation phase.
Historically, Bitcoin has performed well in the fourth quarter, and the current geopolitical and economic backdrop could further fuel this bullish trend. With the upcoming 2024 US elections and anticipated Federal Reserve rate cuts amidst a shifting global economic outlook, many analysts expect the crypto market to maintain its upward trajectory.
In contrast to Bitcoin’s bullish momentum, Ethereum (ETH) has shown signs of cooling. Ethereum staker revenue dropped to $174 million in September, down from its March peak of $247 million. Despite this dip, participation in the Ethereum network remains robust, with 1.09 million validators securing the blockchain.
However, the recent surge in Ethereum’s price to $2,600 has led to a significant influx of ETH into exchanges, with a transfer of over $1 billion in just two days. This could signal a shift in market sentiment, as traders may be preparing to cash in on recent gains. While Bitcoin continues to dominate the market, Ethereum’s price movement and network activity will be closely monitored in the coming weeks.
You need to login in order to Like