Market Decline: A Broader Crypto Market Slowdown
The recent rally of Bitcoin towards the $70,000 mark has failed to sustain itself, leading to a broader market decline. The CoinDesk 20 index, which tracks the largest tokens by market capitalization, also fell by nearly 2% in tandem with Bitcoin’s decline.
U.S.-Listed Bitcoin ETFs See Net Outflow
The streak of inflows for U.S.-listed Bitcoin ETFs has come to an end. A net outflow was recorded on Tuesday, suggesting a shift in investor sentiment or profit-taking after recent gains. This development may be indicative of investors reassessing their positions and taking profits from the recent surge.
Stablecoin Volume: A Potential Indicator of Market Slowdown
Traders have pointed out that stablecoin volume has not grown significantly since late September. This lack of growth in stablecoin issuance is a potential indicator of a slowdown in the broader cryptocurrency market. Stablecoins are often seen as liquidity for quick purchases of coins of interest, and their growth is closely related to higher Bitcoin and crypto prices.
Dogecoin and XRP Lead Losses Among Major Tokens
Dogecoin (DOGE) and xrp (XRP) led losses among major tokens amid the broader market downturn. DOGE dropped 5% while XRP fell 4%, as traders took profits from a move higher earlier in the week.
Bitcoin’s Monday Rally: A False Start?
The failure of Bitcoin to continue its rally towards $70,000 on Monday has left investors wondering if the recent surge was just a false start. The token had reached nearly $69.5K early in the day on Monday but dropped back to $66.5K by Tuesday morning.
Market Action: Flat Mid-Caps and Low-Caps
While major tokens like Bitcoin, Dogecoin, and XRP saw losses, mid-caps and low-caps remained generally flat. However, memecoin bonk (BONK) and governance token APE dropped over 7% to lead losses among smaller tokens.
Causes of Market Slowdown: Key Resistance and Stablecoin Issuances
Traders have pointed out that a key Bitcoin resistance level is one of the causes for the slow uptrend in the cryptocurrency market. Additionally, a pause in stablecoin issuances may be contributing to the slowdown.
Alex Kuptsikevich on Market Slowdown: A Bear’s Defense
Senior market analyst at FxPro, Alex Kuptsikevich, shared his insights on the current market situation:
"The main reason for the entire crypto market’s subsidence seems to be Bitcoin, which the bears defended against an assault on the $70K level. They intensified selling at $69.5K early in the day on Monday and dropped the price to $66.5K on Tuesday morning."
Stablecoin Volume: A Potential Pause in Growth
Kuptsikevich also highlighted the potential pause in stablecoin growth, which may be indicative of a slowdown in the broader cryptocurrency market.
"Stablecoin volume has not increased since late September, setting up a potential pause in the growth of the broader cryptocurrency market, as stablecoins are often seen as liquidity for quick purchases of coins of interest."
Bitcoin ETFs: A Net $80 Million Outflow
U.S.-listed Bitcoin ETFs saw a net outflow of $80 million on Tuesday. Ark Invest’s ARKB took in a record-breaking $134 million outflow, while BlackRock’s IBIT took in $42 million to lead inflows.
BlackRock’s Ether ETF: A Slight Influx
Meanwhile, BlackRock’s ether ETF saw an influx of $11 million on Tuesday, while other products showed no inflow or outflow activity.
Conclusion
The recent rally towards $70,000 has fallen flat, leading to a broader market decline. The failure of Bitcoin to sustain its momentum may be indicative of a shift in investor sentiment or profit-taking after recent gains. Traders are pointing to stablecoin volume and key resistance levels as potential causes for the slow uptrend in the cryptocurrency market.
Market Expectations: A Run to $80,000?
Despite the current downturn, traders foresee a run to $80,000 in the coming weeks as the U.S. elections draw near. Regardless of who is elected president, the market may see an influx of investments and a surge in prices.
Potential Indicators of Market Slowdown:
- Stablecoin volume: Stablecoin volume has not grown since late September, which may be indicative of a slowdown in the broader cryptocurrency market.
- Key resistance levels: Bitcoin’s key resistance level is one of the causes for the slow uptrend in the cryptocurrency market.
- Shift in investor sentiment: The recent outflow from U.S.-listed Bitcoin ETFs suggests a shift in investor sentiment or profit-taking after recent gains.
Market Action: Flat Mid-Caps and Low-Caps
While major tokens like Bitcoin, Dogecoin, and XRP saw losses, mid-caps and low-caps remained generally flat. However, memecoin bonk (BONK) and governance token APE dropped over 7% to lead losses among smaller tokens.
Causes of Market Slowdown: Key Resistance and Stablecoin Issuances
Traders have pointed out that a key Bitcoin resistance level is one of the causes for the slow uptrend in the cryptocurrency market. Additionally, a pause in stablecoin issuances may be contributing to the slowdown.
Alex Kuptsikevich on Market Slowdown: A Bear’s Defense
Senior market analyst at FxPro, Alex Kuptsikevich, shared his insights on the current market situation:
"The main reason for the entire crypto market’s subsidence seems to be Bitcoin, which the bears defended against an assault on the $70K level. They intensified selling at $69.5K early in the day on Monday and dropped the price to $66.5K on Tuesday morning."
Stablecoin Volume: A Potential Pause in Growth
Kuptsikevich also highlighted the potential pause in stablecoin growth, which may be indicative of a slowdown in the broader cryptocurrency market.
"Stablecoin volume has not increased since late September, setting up a potential pause in the growth of the broader cryptocurrency market, as stablecoins are often seen as liquidity for quick purchases of coins of interest."
Bitcoin ETFs: A Net $80 Million Outflow
U.S.-listed Bitcoin ETFs saw a net outflow of $80 million on Tuesday. Ark Invest’s ARKB took in a record-breaking $134 million outflow, while BlackRock’s IBIT took in $42 million to lead inflows.
BlackRock’s Ether ETF: A Slight Influx
Meanwhile, BlackRock’s ether ETF saw an influx of $11 million on Tuesday, while other products showed no inflow or outflow activity.
