Bitcoin (BTC) has risen more than 3% in the past 24 hours and has now returned above $60,000 as optimism grows over a Federal Reserve rate cut. Other cryptocurrencies, including Ethereum (ETH), Uniswap (UNI), FET, SUI, Aptos (APT), and Bittensor (TAO), have all recorded significant gains. However, Solana (SOL), Ripple (XRP), Dogecoin (DOGE), and Toncoin (TON) remain in the red, posting notable declines.
Relatedly, spot Bitcoin ETFs surged, adding $250 million worth of Bitcoin in a single day, the largest single-day increase in more than a month. As a result, BTC jumped above $61,000 before settling around $60,000. The move back above $60,000 means BTC is up more than 7% over the past week.
Bitcoin ETF sees inflows, ETH ETF continues to struggle
Spot Bitcoin ETFs gained nearly $13 million on Monday, while spot Ethereum ETFs lost $9.5 million, according to the latest data. BlackRock’s IBIT led the way among spot Bitcoin ETFs, attracting more than $15 million, bringing its total net inflows since January 11 to nearly $21 billion. Fidelity’s FBTC followed closely behind, attracting more than $5 million, while Franklin Templeton’s EZBC attracted $5.04 million in inflows. Grayscale’s Bitcoin Mini Trust added $2.82 million, and VanEck’s HODL received inflows worth $4.91 million.
On the other hand, spot Ethereum ETFs underperformed, with funds seeing outflows of $9.51 million. BlackRock’s ETHA and Grayscale’s Ethereum Mini Trust were the only funds to see inflows, attracting $4.16 million and $2.29 million, respectively. Other major Ethereum ETFs were largely neutral, with Grayscale’s ETHE losing $13.83 million.
Spot Bitcoin ETF Buying Is Strong
Spot Bitcoin ETFs bought $250 million worth of BTC on Monday, the most in over a month. Spot Bitcoin ETFs have been steadily accumulating holdings, sparking speculation about the cause of the recent rally. The most likely factor could be the potential impact of the Federal Reserve’s rate-cutting meeting, where the central bank is expected to cut rates for the first time since March 2022. BTC products reversed their weekly outflow trend with inflows of $436 million, after outflows totaled $1.2 billion previously. The surge in inflows can be attributed to expectations of a 50 basis point rate cut on September 18. Despite BTC trading over $60,000 and ETH climbing back above $2,300, markets remain jittery.
Japan reconsiders crypto regulations
Japan is reportedly considering relaxing cryptocurrency rules as more companies explore blockchain technology. While Prime Minister Fumio Kishida has prioritized Web3, it remains to be seen whether his successor will support regulatory changes for cryptocurrencies. Under Prime Minister Kishida, Japanese regulators streamlined the process for listing tokens. The country also drafted stablecoin rules and developed a framework for cryptocurrency exchanges to protect investors.
Japanese companies exploring blockchain initiatives include Sony, Nippon Telegraph and Telephone Corporation, Mitsubishi UFJ Financial Group, and Toyota Motor. This week, Sony Blockchain Solutions Lab and Circle announced a partnership to drive innovation and creativity through decentralized technologies on the Soneium blockchain ecosystem.
“By combining Circle’s financial infrastructure with Soneium, we will redefine the landscape of digital entertainment and finance.”
BTC Price Analysis
Bitcoin (BTC) rose more than 3% as expectations grew that a rate cut by the Federal Reserve would boost demand for the cryptocurrency. BTC made a sharp intraday move late Tuesday, breaking above $61,000 before settling around $60,000. The asset is currently trading just below $60,500, with buyers firmly in control of the market. The probability of a 50 basis point rate cut was 55% on Wednesday, with traders fully pricing in a quarter percentage point cut.
“I think the recent increasing correlation between cryptocurrencies and traditional markets” is driving the price of bitcoin higher.”
Additionally, MicroStrategy announced plans to sell convertible notes to buy more BTC, adding to optimism for the world’s largest cryptocurrency. Investors are eyeing higher highs around $65,000 as BTC trades above a key level. Analysts at Bitfinex said a smaller rate cut of 25 basis points could spark optimism in the market, while a larger cut of 50 basis points could lead to uncertainty.
BTC suffered a weekend crash after a sharp rise of nearly 4% above the 20-day moving average, 50-day moving average, and $60,000 level to $60,479. However, with sellers active at this level, buyers lost momentum over the weekend and BTC fell back below $60,000 on Saturday, closing above the 50-day moving average at $59,949. On Sunday, selling pressure intensified and BTC fell below the 50-day moving average, falling 1.31% to close at $59,165. The decline continued on Monday, with a 1.69% drop that took BTC to $58,164.
BTC has strong support at $58,000 and demand picked up on Tuesday, thanks to several market factors such as ETFs buying $250 million worth of BTC and positive expectations of a rate cut. As a result, buyers flooded into the market and BTC rose nearly 4% to re-cross the 50-day moving average and the $60,000 level to reach $60,321. As shown in the price chart, buyers also tried to break through $61,000 but failed. BTC rose slightly in the current trading session as buyers look to consolidate above $60,000 in anticipation of a rate cut. If the rate cut has a positive impact on the market, we may see BTC rise sharply and break through the 200-day moving average to $65,000. However, a more significant rate cut may sow uncertainty in the market and we may see BTC fall below $60,000 to $58,000 or $55,000. If the sentiment turns negative, BTC could drop to $50,000.
ETH Price Analysis
Ethereum (ETH) climbed above $2,300 after gaining nearly 1.50%, marking a notable recovery alongside BTC. While ETH may have reclaimed $2,300, the cryptocurrency was stuck with stubborn resistance at $2,400 and was unable to break above this level. The downward sloping 20-day SMA also suggests bearish sentiment for ETH. Despite the bearish pressure, ETH’s $2,300 support level was tested multiple times in September but remained stable. Looking at the chart, we see that ETH broke above $2,400 on Friday, rising to $2,442 after a 3.34% gain.
However, as sellers were active at this level and the 20-day moving average came into play, ETH retreated on Saturday, falling to $2,420, a loss of 0.91%. On Sunday, selling pressure intensified as sellers pushed ETH below $2,400. ETH eventually fell 4.21% to close at $2,318. ETH continued to fall at the beginning of the week, falling 0.95% below $2,300 to close at $2,296. However, as demand picked up, sellers lost momentum, allowing ETH to recover somewhat on Tuesday. As a result, ETH rose just over 2% to close at $2,343. Buyers also tried to break through $2,400 but failed to do so, successfully hitting a high of $2,393 before retreating. ETH is slightly down in the current trading session as both buyers and sellers look to control the trading session.
ETH must break through $2,400 to change the sentiment towards the asset. However, it has not been able to do so despite multiple attempts. Buyers must defend the $2,300 level to prevent further declines. If this level is breached, ETH could drop to $2,100.
SOL Price Analysis
Solana (SOL) is struggling to stay above $130, with the 20-day EMA acting as a dynamic resistance that prevents it from moving towards $140. As a result, SOL has faced incredible volatility this week as buyers defend the support while sellers try to push it below $130. On Friday, SOL faced huge selling pressure as sellers pushed the price to a daily low of $131. However, as demand picked up at lower levels, it quickly rebounded, eventually breaking above the 20-day EMA and stabilizing at $139.
However, sellers took control of the market over the weekend, with SOL falling 1.41% on Saturday and 4.20% on Sunday, falling back below its 20-day moving average to close at $131. As SOL approached support, buyers and sellers engaged in a fierce battle for control, which heightened volatility on Monday. Ultimately, buyers prevented the price from falling below $130, but only managed to move slightly higher. Buyers attempted to rebound and push higher to $140 on Tuesday, but were unsuccessful as sellers pulled the price back below its 20-day moving average, and SOL again managed only slightly higher.
SOL is slightly down in the current trading session as sellers look to regain control and push SOL below $130. Buyers will aggressively defend $130 to prevent a drop to $120 or lower. On the other hand, if the buyers can successfully break above the 20-day EMA, it will suggest that the bears are losing control. In this case, SOL is likely to test the $140 resistance level.
DOT Price Analysis
Polkadot (DOT) continues to fall as hopes of a breakout above $4.50 fade again after showing positive signs last week. DOT had a relatively positive last week and broke above the 20-day EMA after rising 3.02% to $4.43 on Friday. Despite the strong resistance at $4.50 and the 50-day EMA also acting as dynamic resistance, DOT managed to gain a small 0.23% on Saturday. However, after failing to break above the 20-day EMA, it fell back on Sunday as sellers took over and pushed DOT down 0.90% to $4.40.
On Monday, DOT continued its plunge, falling 4.55% to close at $4.20. On Tuesday, buyers once again attempted a rebound but were unsuccessful as buyers pushed DOT below its 20-day EMA to $4.16. DOT is down just over 1.20% on the current trading day as sellers continue to push prices lower. If sellers remain in control, DOT could drop to $4, a level with strong support. We could see a rebound from this level, but the extent of the rebound will depend on whether DOT can break above its 20-day EMA again.
WIF Price Analysis
Dogwifhat (WIF) is trading between $1.40 and $1.60, with both buyers and sellers currently unable to decide on the large price swings. WIF has seen a pick-up in demand at lower levels, but has also seen selling on the bounce. As we can see on the price chart, despite the narrow price range, it has also experienced considerable volatility. WIF broke above its 20-day EMA and $1.60 on Friday, but quickly fell back due to increasing selling pressure. Following a 5.02% gain on Friday, WIF fell 4.29% on Saturday and 4.24% on Sunday, falling back below its 20-day EMA to close the weekend at $1.50.
Sellers tried to push WIF lower on Monday, but buyers offset the selling pressure and the price rose slightly. On Tuesday, WIF attempted to break above the 20-day EMA with a gain of just under 2%. However, the move failed and WIF fell again in the current trading session. Sellers will look to push WIF to the $1.40 support level, where buyers are expected to hold. If the sentiment changes and WIF is able to break above the 20-day EMA, it may retest the $0.160 resistance level.
XRP Price Analysis
Ripple (XRP) has been struggling after reaching $0.60, with the price falling to around the $0.56 support level. The asset is down nearly 2% in the past 24 hours, but if we look at the data from the previous week, it is still positive. After breaking above the 50-day moving average on Friday, XRP continued to rise on Saturday, gaining nearly 4% to close just below $0.60. Due to strong resistance at this level, XRP fell back sharply on Sunday, falling 4.04% to $0.57, with the 500-day moving average acting as a dynamic support level.
This allowed XRP to offset the selling pressure, rising 2.60% to $0.58 on Monday. However, sellers took over on Tuesday and XRP saw a small decline. The price is down 1.52% on the current trading day. If XRP continues to fall, we could see the price fall below the 50-day moving average to $0.55. However, if it rebounds and buyers gain momentum, we could see another test of the $0.60 resistance level.
TON Price Analysis
Toncoin (TON) is struggling to break through the $5.60 resistance level, with buyers facing heavy selling pressure. On Friday, TON fell from the $6 level as buyers lost momentum at higher levels after demand dried up. As a result, TON closed at $5.81, up 5.81%. However, TON fell over the weekend as selling pressure intensified, falling 2.38% on Saturday and 2.24% on Sunday to close at $5.55. At the start of the week, sellers continued to exert control, with TON falling to a daily low of $5.39 before recovering and closing at $5.47.
TON attempted to break through $5.60 on Tuesday, rising to a high of $5.59. However, it failed to succeed and finally closed at $5.50 after rising 0.56%. In the current trading day, TON is slightly down as both buyers and sellers look to establish control and dictate the price. A break above $5.60 could lead to another drop towards $6. However, if sellers continue to exert control, TON could fall to $5.30, where the 20-day moving average is currently located, or even to the $5 support level.
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