The global cryptocurrency market capitalization has fallen 0.5% over the past 24 hours and now stands at $2.32 trillion.
Additionally, the total cryptocurrency trading volume for the last day was $85.8 billion.
Today, the vast majority of coins fell. And the declines were relatively small.
On September 24, 2024, Bitcoin (BTC) is gradually approaching the high of $65,200 reached on August 25. The approach of this key resistance threshold makes it possible for Bitcoin to fall into a consolidation zone in the coming weeks.
Today's price:
Since the Federal Reserve cut U.S. interest rates by 50 basis points, Bitcoin has seen a nearly 6% increase. However, it is worth noting that this increase in Bitcoin was mainly driven by futures trading rather than spot market activity, which undoubtedly raised concerns about potential volatility and pullbacks in the market.
Currently, the global open interest (OI) of Bitcoin futures has reached $19.43 billion, surpassing the $18.93 billion on August 25, while the price is still about $1,000 lower than the local high. This clearly shows that the current price trend is mainly dominated by perpetual contracts and futures trading, which is in sharp contrast to the upward trend dominated by the spot market earlier this month.
Meanwhile, the pace of spot market buying slowed, with the spot cumulative Delta indicator flattening after breaking above $63,500. This change, combined with the increase in futures activity, hints at a possible correction or partial correction to a new lower timeframe. While this can be seen as a bearish signal to some extent, Bitfinex analysts note that open interest does not exactly indicate how much leverage derivatives traders are using. High open interest could be due to the rekindled speculative interest in risky assets such as Bitcoin following the rate cuts.
In addition, altcoin speculation has also become increasingly active. Some tokens such as SUI and AAVE have risen by as much as 100% since the lows in August and September. In addition, altcoin open interest has also hit a new high of $11.48 billion, compared with the previous peak of $10.74 billion on August 19.
However, a counterargument to potential consolidation comes from renewed interest in spot bitcoin exchange-traded funds (ETFs), which saw $397.2 million in net inflows last week after outflows from August 24 to September 6.
Conclusion:
The future direction of the cryptocurrency market may be affected by broader market trends. In particular, if the S&P 500 continues to break through its all-time highs, Bitcoin is likely to follow. The report emphasizes that traditional finance's risk appetite for Bitcoin is reflected through spot ETF inflows, which has also led to a strong correlation between Bitcoin and the S&P 500 index from a historical perspective.
