Crypto Market Update

23rd October 2023

Market Update: The market reacts to potential Bitcoin ETF approvals by SEC.

The ongoing consideration by the U.S. Securities and Exchange Commission (SEC) of spot Bitcoin exchange-traded funds (ETFs) has ignited optimism and intense discussions within the crypto community.

The anticipation of the approval of all spot Bitcoin ETF applications is tangible. Over the past 24 hours, BTC Markets has observed a remarkable spike in trading volume on our exchange, reflecting the market's keen focus on the SEC's decision timeline.

Institutions are closely monitoring these developments, with notable projections from industry leaders such as JPMorgan suggesting approvals could come within months, potentially preceding the final deadline for the Ark 21Shares application on January 10.

Among the 12 applications under consideration, key players include Grayscale, 21Shares & Ark, BlackRock, Bitwise, VanEck, Wisdomtree, Invesco & Galaxy, Fidelity, Valkyrie, Global X, Hashdex, and Franklin. This diverse range of applicants underscores the broad industry interest in spot Bitcoin ETFs.

The impact of spot Bitcoin ETFs on the cryptocurrency market has already become evident. A recent report falsely claiming the approval of BlackRock's spot Bitcoin application triggered a substantial surge in Bitcoin's price, resulting in nearly US$100 million in liquidations within just one hour. It's noteworthy that Bitcoin's price sustained at these elevated levels, rather than retracing to pre-FUD levels, which is a common occurrence after fake news events.

The market's keen sensitivity to these developments indicates that it is poised for action. Traders are poised on the sidelines, ready to seize opportunities once these eagerly awaited approvals are granted.

For the latest updates and insights on these developments, stay tuned to BTC Markets.

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23rd October 2023

Weekly Crypto Close

During the last trading week, the crypto market saw a sea of green candles across the board with all majors closing in positive territory.

Bitcoin (BTC) closed at US$29,992.46, exhibiting a noteworthy gain of 10.45%.

Ethereum (ETH) followed suit, closing at $1,663.70, gaining 6.80% whilst XRP displayed a positive trend, concluding the week at $0.5226 surpassing a psychological resistance level and reflecting a gain of 7.22%.

Litecoin (LTC) demonstrated a similar pattern, closing at $65.26, increasing 5.89% and Cardano (ADA) secured a closing price of $0.2639, registering a gain of 6.71%.

Notably, Solana (SOL) exhibited a substantial surge of the week, closing at $29.05 and experiencing a remarkable gain of 32.47%.

Bitcoin continued to affirm its bullish momentum by concluding the week with its ninth consecutive week of positive performance, posting a 2.11% increase, and closing at 52.11% dominance for the week.

Simultaneously, the total cryptocurrency market capitalisation gained an impressive 8.16% during the week and ultimately closing at a valuation of US$1.124 trillion.

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11th September 2023

Bitcoin's Looming 'Death Cross' Peaks Investor Interest Amidst Volatile Markets

• Bitcoin is on the verge of a significant "death cross" event, with the last occurrence in January 2022 leading to a 10.41% loss and subsequent recovery.
• Recent market dynamics, interspersed by volatility, saw Bitcoin trading sideways for 57 days until a massive US$1 billion liquidation event on August 17, 2023, causing a 7.33% price drop.
• Ethereum experienced its own death cross in September 2023, coinciding with the SEC announcement regarding the Bitcoin ETF, raising questions about Bitcoin's response to its current bearish technical pattern amid global economic challenges.

Bitcoin finds itself perched on the precipice of a momentous technical event known as the "death cross," a juncture that investors and analysts are closely monitoring in anticipation of updates from the Federal Reserve regarding potential monetary tightening following interest rate announcements this week.

Market reflection.

This echoes the previous occurrence of the Bitcoin death cross, which unfolded on January 14th, 2022, coinciding with a valuation of BTC at US$42,558. Following this ominous signal, the cryptocurrency endured a sharp correction of more than 20% within the subsequent ten days, culminating in a notable 10.41% loss on January 21st, 2022. Subsequently, Bitcoin embarked on a gradual recovery, ultimately regaining nearly 35% of its value over a span of 17 days.

January 24th, 2022, marked a pivotal moment for Bitcoin as its price dipped to US$32,917, marking the first time since July 2021 that it ventured into this price range.

Forward looking.

Recent market dynamics have been characterised by heightened volatility alongside extended periods of consolidation where Bitcoin remained range-bound for an extended period of 57 days (June 21st to Aug 17th, 2023). However, a significant development occurred on August 17th, 2023, when a staggering US$1 billion worth of liquidations transpired. This event led to a 7.33% drop in Bitcoin's price within a 24-hour window.

Coinglass data revealed that approximately 168,173 traders faced liquidations, resulting in the total liquidation volume reaching US$1 billion, with the largest individual liquidation recorded on ETHBUSD at US$55.92 million.

Past vs present death cross events.

Interestingly, parallels have emerged between the present market conditions and the July 2022 death cross event. The 2022 price retracement occurred after the death cross whereas 2023 price retracement has occurred pre-death cross.

Reflecting on the 2022 occurrence, Bitcoin's price underwent a 10.41% downturn, prompting 236,000 traders to experience position liquidations within a 24-hour timeframe. This tumultuous period accumulated an aggregate liquidation volume of US$867 million.

It is worth noting that Ethereum, the second-largest cryptocurrency by market capitalisation, experienced its own death cross on September 1st, 2023, following the US$1 billion liquidation event. This event was followed by an announcement from the SEC regarding a delay in its decision on the Bitcoin ETF.

What’s next?

The looming question that occupies the minds of market participants pertains to whether Bitcoin will chart a similar course in response to this bearish technical pattern or has the market already priced in this event? This uncertainty is exacerbated by the forthcoming release of US inflation figures, with technical indicators currently signalling the potential for further downside. Factors contributing to this outlook include reduced market liquidity and the rising cost of living across the global economic landscape. Investors and analysts are closely monitoring these developments as they shape the future trajectory of Bitcoin and the broader cryptocurrency market.

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