2 metrics signal that the $1T market cap support is unlikely to hold
Despite 8.5% weekly rise in cryptocurrencies, lack of stable premiums in Asia and futures market activity show the lack of buyer confidence.
Market analysis
Cryptocurrencies broke the $1 trillion market cap resistance on October 26, which had held for the previous 41 days. Despite bitcoin (BTC)'s modest weekly gains of 5.5%, the total value of 20,000 listed tokens increased by 8.5% between October 24 and October 31.
Total Crypto Market Cap, USD (Billion). Source: TradingViewThe cryptocurrency market was positively impacted by a 6.3% weekly rally in the mid-cap Russell 2000 stock index. Encouraging news accompanied the favorable winds from the traditional markets.
For example, 55,000 BTC was withdrawn from Binance on October 26, a record high. Typically, analysts view the reduced number of coins deposited on exchanges as a bullish indicator, as the immediate selling pressure decreases.
In addition, exchange and wallet provider Blockchain.com has teamed up with payment processing giant Visa to launch a crypto card. The cryptocurrency company revealed on October 26 that there would be no sign-up or annual fees, no transaction fees, and users would earn 1% of all digital asset purchases.
>Instead of focusing on Bitcoin, cryptocurrency traders spread their bets on altcoins. Therefore, comparing winners and losers among the top 80 coins provides skewed results, as seven have risen by 20% or more in the past week.
Despite 8.5% weekly rise in cryptocurrencies, lack of stable premiums in Asia and futures market activity show the lack of buyer confidence.
Market analysis
Cryptocurrencies broke the $1 trillion market cap resistance on October 26, which had held for the previous 41 days. Despite bitcoin (BTC)'s modest weekly gains of 5.5%, the total value of 20,000 listed tokens increased by 8.5% between October 24 and October 31.
Total Crypto Market Cap, USD (Billion). Source: TradingViewThe cryptocurrency market was positively impacted by a 6.3% weekly rally in the mid-cap Russell 2000 stock index. Encouraging news accompanied the favorable winds from the traditional markets.
For example, 55,000 BTC was withdrawn from Binance on October 26, a record high. Typically, analysts view the reduced number of coins deposited on exchanges as a bullish indicator, as the immediate selling pressure decreases.
In addition, exchange and wallet provider Blockchain.com has teamed up with payment processing giant Visa to launch a crypto card. The cryptocurrency company revealed on October 26 that there would be no sign-up or annual fees, no transaction fees, and users would earn 1% of all digital asset purchases.
>Instead of focusing on Bitcoin, cryptocurrency traders spread their bets on altcoins. Therefore, comparing winners and losers among the top 80 coins provides skewed results, as seven have risen by 20% or more in the past week.
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