Market Overview

The cryptocurrency market added 3.6% to its capitalisation over the past seven days and approximately 0.6% in 24 hours, reaching $3.14 trillion. At the start of trading on Monday, there was a slight decline to $3.18 trillion, but a return to monthly highs attracted local buyers. Active growth since the beginning of the year has not only pushed the market away from the ‘bottom’ where prices had been hovering for two weeks prior, but also ensured a break above the 50-day moving average, which we have not seen in almost three months. In the near term, we are closely monitoring the market’s attempts to consolidate at $3.20T. An increase in selling will confirm the shift to a bear market. The ability to grow will indicate the end of a long and relatively deep correction, setting the stage for a rapid approach to highs above $4T. By default, we are in favour of a bearish scenario until proven otherwise.

surpassed the $92K mark, marking its fifth consecutive daily growth candle today and reaching its highest level since December 12th. Last month, market participants actively sold off the first cryptocurrency in the $92–95K range, halting attempts to form a rebound after the October-November sell-off. Has the market changed during this time? It is unlikely that it has become stronger, with no prospects for accelerated economic growth or more dovish monetary policy sentiment.

News Background

Retail investors actively bought Bitcoin in the second half of last year, while large players were passive or took profits at October highs. Santiment calls this dynamic alarming. At the same time, there has been a decline in interest in the asset in the media and on social networks.

In December, large holders sold 20,000 BTC. However, the volume of leveraged positions grew by $2.4 billion, despite a 40% decline in trading activity, notes analyst Crazzyblockk. The current market situation does not signal that the bottom has been reached.

Long-term Bitcoin holders have stopped selling for the first time since July, according to VanEck. The current sideways movement of Bitcoin against the backdrop of record growth in and is comparable to the ‘calm before the storm,’ which is usually followed by a rally in the crypto market, a Bull Theory analyst hopes.

According to Lookonchain, an investor with $11 billion in assets has opened long positions on futures for the three leading cryptocurrencies worth $749 million. In October, he correctly predicted the market crash.

In the near future, Bitcoin and are expected to receive a significant influx of capital due to the end of the rally in the precious metals market, according to Garrett Jean, former CEO of the now-defunct BitForex exchange.

According to Etherscan, the Ethereum network set a new record of 2.2 million transactions processed per day. Transaction costs fell to historic lows ($0.17).

Bitcoin has now turned 17. The anonymous creator of Bitcoin, under the pseudonym Satoshi Nakamoto, launched the network for the first cryptocurrency on January 3rd 2009. It was on this day that the very first block in the network was created, known as the genesis block, which contained 50 BTC.

The FxPro Analyst Team

Cryptocurrency Market Sees Modest Gains Amidst Mixed Signals

The cryptocurrency market has experienced a notable uptick, adding 3.6% to its capitalization over the past week and approximately 0.6% in the last 24 hours, bringing the total to $3.14 trillion. However, trading on Monday saw a slight dip to $3.18 trillion, prompting local buyers to step in as the market approached monthly highs. This recent growth marks a significant shift from the stagnant prices that had plagued the market for two weeks prior, breaking above the 50-day moving average for the first time in nearly three months.

As the market attempts to consolidate around the $3.20 trillion mark, analysts are closely watching for signs of either a bullish recovery or a bearish downturn. An increase in selling pressure could signal a shift to a bear market, while sustained growth might indicate the end of a prolonged correction, potentially paving the way for a surge towards the $4 trillion milestone.

Bitcoin Surges Past $92K

Bitcoin has surpassed the $92,000 mark, achieving its fifth consecutive daily growth candle and reaching levels not seen since December 12. Despite this impressive rally, market participants remain cautious. Last month, significant sell-offs in the $92–95K range halted Bitcoin’s rebound efforts following the October-November downturn. Analysts remain skeptical about the market’s strength, citing a lack of accelerated economic growth and a more dovish monetary policy sentiment.

Retail vs. Institutional Dynamics

In a concerning trend, retail investors have been actively purchasing Bitcoin, while larger players have remained passive or taken profits at previous highs. According to Santiment, this dynamic raises alarms about the market’s overall health. In December, large holders sold off 20,000 BTC, even as leveraged positions grew by $2.4 billion, despite a 40% decline in trading activity. This suggests that the market may not have reached its bottom yet.

Interestingly, long-term Bitcoin holders have paused their selling for the first time since July, hinting at a potential shift in sentiment. Analysts liken the current sideways movement of Bitcoin to the “calm before the storm,” often preceding a market rally.

Institutional Interest and Ethereum Milestones

Investor interest remains strong, with a notable player holding $11 billion in assets recently opening long positions on futures for the top three cryptocurrencies, valued at $749 million. This investor had accurately predicted the previous market crash, adding credibility to their current positions.

In parallel, Ethereum has set a new record, processing 2.2 million transactions in a single day, with transaction costs plummeting to historic lows of just $0.17. This surge in activity reflects growing interest in the Ethereum network, even as Bitcoin celebrates its 17th anniversary since the launch of its genesis block on January 3, 2009.

Looking Ahead

As the cryptocurrency market navigates these mixed signals, experts like Garrett Jean, former CEO of BitForex, anticipate a significant influx of capital into Bitcoin and Ethereum, particularly as the rally in the precious metals market comes to an end. With the market at a critical juncture, all eyes will be on how these dynamics unfold in the coming weeks.

The FxPro Analyst Team continues to monitor these developments closely, emphasizing a cautious approach until a clearer trend emerges.