Global crypto markets registered a 104% year-on-year (YoY) increase in market cap, with Bitcoin (BTC) remaining a standout performer, with growth of between 50% and 55%.
Several factors contributed to BTC and the crypto market’s performance during the current year. Chief among these factors were the Securities and Exchange Commission (SEC) ’s approval of spot Bitcoin and Ethereum ETFs, the fourth Bitcoin halving, and the launch of Runes.
Meanwhile, the co-founder of Bitmex, Arthur Hayes, has predicted BTC will hit $100k by the end of the year and a staggering $1 million by the end of 2025, outlining several factors that could drive a surge in BTC and the broader financial market.
Crypto Markets Register Growth
A report by Binance revealed that the market capitalization of virtual digital assets registered a growth of $720 billion during the calendar year. This is a 44% increase year-to-date and a 104% increase year-on-year (Y0Y). The report also sheds light on how growth in the crypto market has outpaced the traditional markets. Major stock indices such as Hong Kong’s Hang Seng Index and UK’s FTSE 100 have registered only single-digit growth in the year’s first half. In comparison, major cryptocurrencies such as BTC and Ethereum (ETH) have outperformed the markets by a wide margin. According to Binance CEO Richard Teng, the first half of 2024 has been remarkable for the crypto markets.
BTC’s dominance has been unrivaled thanks to the launch of spot Bitcoin ETFs, the halving event, and the launch of Runes. US spot ETFs have attracted inflows of over $17 billion and an average daily trading volume of $2.5 billion. Teng stated,
“The first half of 2024 has been remarkable for the global VDA market. Bitcoin’s increased market dominance and the enthusiastic reception of both Bitcoin and Ether ETFs highlight the growing appeal of VDAs.”
Spot Bitcoin And Ethereum ETFs See Turnaround
US-based spot Bitcoin and Ethereum ETFs started the week on a positive note. Spot Bitcoin ETFs registered inflows worth almost $28 million on Monday, while spot Ethereum ETFs saw inflows worth nearly $5 million, marking a departure from the recent trend of significant outflows. However, in the case of Ethereum, this is a modest amount given the $401 million worth of outflows witnessed since July.
Ethereum is attracting considerable interest after the market correction, with investors pouring in significant capital, over $150 million, marking a resurgence for the world’s second-largest cryptocurrency. While ETH saw a significant price drop, investors saw a strategic buying opportunity. With the capital inflow, ETH’s net inflows have crossed a total of $850 million since the beginning of the year.
Besides Ethereum, several other major cryptocurrencies have also registered a sharp rebound. BTC also registered considerable interest, although its net inflows of $13 million were dwarfed by ETH. Despite being modest, the turnaround marks a renewed interest in BTC and other crypto assets. Short positions on BTC also registered a notable decline, signaling that investors were not betting on an extended decline. Solana (SOL), Ripple (XRP), and Cardano (ADA) also registered notable inflows of $4.5 million, $0.7 million, and $0.6 million, respectively, further fueling the idea that the recent correction could be ending.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) was able to reverse its recent price woes and break above $60,000 as buyers returned to the market in droves. Crossing the psychologically important $60,000 price level could mark a turnaround in the fortunes of BTC and possibly allow it to break above the moving averages as it looks to regain lost ground after a decline that yanked it from highs of $70,000 to below $50,000 at one point. Markets also seem to have turned bullish, with Bitmex co-founder predicting BTC could hit $100,000 by the end of 2024 and a staggering $1 million by the end of 2025.
Another report from Bitfinex analyzed BTC’s rebound and potential local bottom. BTC has surged almost 30% since hitting a recent low of $49,000 to push above $60,000 this week. The Bitfinex report examined BTC’s recovery through various metrics and gave key insights into whether or not BTC was approaching a local bottom. Looking at the BTC price chart, we can see that BTC lost momentum after Thursday’s 12% surge as the moving averages came into play. As a result, BTC turned bearish on Friday, dropping by 1.34%. The price continued its bearish trajectory as well and dropped by almost 4% on Sunday to slip below $60,000 and settle at $58,775.
Source: TradingView
However, the sentiment changed as the new week rolled in, as bears mounted a strong push to take BTC above $60,000, reaching an intra-day high of $60,750. However, strong selling pressure pushed BTC back down, eventually settling at $59,410. BTC finally broke above $60,000 on Tuesday after an increase of 2.10% took it to $60,658. Buyers also attempted a move above the moving averages but were thwarted. The current session sees BTC trading at $60,842, marginally up compared to Tuesday. It’s clear from the price chart that BTC faces considerable resistance at the moving averages, with the 50 and 200-day SMAs also performing a death cross.
Buyers are attempting to surpass this level but have so far been unsuccessful. However, if they can consolidate above $60,000, we could see BTC retest these levels again. A break above these levels could see BTC push towards $65,000. Sellers will try to drive BTC back below $60,000; if successful, we could see the price drop towards $58,000.
Ethereum (ETH) Price Analysis
Ethereum (ETH) has been positive this week, having registered an increase of 2.30% over the past 24 hours and over 9% during the past week. If we look at ETH’s recent low of $2,100, the price has rallied by around 27%. However, ETH has struggled to move above $2,800 despite this and is consolidating under $3,000. As we can see from the price chart, ETH has witnessed considerable price movement since the August 5 crash. A sharp recovery on Thursday pushed ETH to $2,684. However, buyers lost momentum, and ETH was back in the red on Friday. By Sunday, ETH had dropped down to $2,556 after a 2.09% drop on the day.
Source: TradingView
ETH made a strong start to the current week, registering an increase of 6.52% on Monday to push above $2,700 and settle at $2,723. However, the price fell back on Tuesday as sellers attempted to drive the price below $2,500. However, demand at lower levels prevented that, allowing ETH to recover. The price eventually settled at $2,703 after a drop of 0.71%. The current session sees ETH marginally up and trading at $2,724. ETH is evidently struggling to push above the $2,700-$2,800 zone, with buyers repeatedly losing momentum at these levels. So, what happens to the ETH price from here?
ETH is encountering considerable volatility, with the Bollinger bands highlighting increased volatility. If buyers push ETH above the $2,700-$2,800 level, we could see a move towards $3,000. A break above this level could see a move to the Bollinger bands’ upper levels. However, sellers will look to drive ETH below $2,500. If this level is breached, ETH could slide as low as $2,200.
Solana (SOL) Price Analysis
Solana’s (SOL) recovery has hit a roadblock in the form of the 200-day SMA, which is preventing it from pushing above the $150 level. SOL had surged above $160 on Thursday as markets made a strong recovery. However, bulls lost steam on Friday as SOL dropped over 4% to $156 and remained bearish over the weekend. By Sunday, bears pushed the price below $150 and the 50 and 200-day SMAs to $141.59. Despite the bearish sentiment over the weekend, SOL made a positive start to the week, as buyers pushed SOL to $146, an increase of 3.38%.
Source: TradingView
Buyers made a strong attempt to push SOL above $150, but with sellers active at this level, they were unable to do so. With the 200-day SMA acting as a dynamic resistance level, SOL could register only a marginal increase on Tuesday, as buyers and sellers both failed to move the price by any significant margin. The current session sees SOL down by 0.83% as buyers look to drive the price below $140. However, while SOL faces considerable selling pressure at $150, buyers are preventing a drop below $140. If bulls gain momentum, it could drive SOL above $150 and test the resistance at $155 and $160. If sentiment remains bearish and sellers can drive SOL below $140, it could drop to $130 or lower.
Toncoin (TON) Price Analysis
Toncoin (TON) has seen impressive gains this week as buyers eye the $7 price level in the short term and $10 in the long term. The altcoin’s listing on Binance has acted as a catalyst to drive its price higher as it outperforms major cryptocurrencies in the market, many of which have had a mixed week so far. If we look at the numbers, TON has registered a jump of 6.40% in the past 24 hours and a 16% increase in the past week. TON had surged by over 15% on Thursday as buyers pushed the price past $6 to $6.26. Friday saw another substantial increase, which pushed the price above the 20-day SMA to $6.60. Buyers also attempted a push to $7 but were thwarted by sellers.
Source: TradingView
TON climbed to $6.69 on Saturday but fell significantly on Sunday after a 7.24% drop yanked the price below the 20-day SMA to $6.20. However, TON quickly recovered, starting the week on a positive note. Sellers started the day with incredible bullish momentum that saw TON cross $7, reaching an intra-day high of $7.04. However, TON encountered significant selling pressure at this level, and the price dropped back to settle at $6.29, an increase of 1.40%. TON remained bullish on Tuesday, moving above the 20-day SMA and settling at $6.47. The current session sees TON up by 4.55% as buyers look to retest the resistance at $7.
TON has been incredibly bullish this week, and if the current trend continues, it could break above $7. Following this break, could TON eye a move to $10?
Shiba Inu (SHIB) Price Analysis
Shiba Inu (SHIB) announced considerable upgrades to its ecosystem, specifically upgrades to its Shibarium protocol, introducing a new burning mechanism, and improved wallet compatibility. This is besides two upgrades already executed this year, which included a new UI and a hard fork that allowed compatibility with popular self-custody wallets. While a lot is happening in the SHIB ecosystem, its price has been relatively muted this week after a drastic decline that culminated in the August 5 market rout. SHIB has stabilized since and registered an 11.26% increase on Thursday, rising to $0.0000143.
Source: TradingView
SHIB has declined since, and by the end of the weekend, it had dropped to $0.0000133. Monday saw a recovery as SHIB rose by 4.03% to $0.0000139. However, the price fell back into the red on Tuesday as bearish sentiment returned. The current session sees SHIB down by 0.94% as sellers look to drive SHIB below $0.130. For buyers to gain a foothold, SHIB must push and close above the $0.0000140 price level.
Uniswap (UNI) Price Analysis
Uniswap (UNI) is another cryptocurrency that has put up a strong showing during the current week after a robust recovery following the August 5 collapse. UNI has registered an increase of 4.45% in the past 24 hours and over 9% over the week as buyers look to push it above the 20-day SMA. UNI had ended the weekend on a bearish note, dropping by 4.35% to settle below $6 at $5.91. This came after an impressive post-August 5 recovery, during which the price hit a high of $6.32.
Source: TradingView
UNI began the current week on a positive note, registering an increase of 5.31% on Monday to push back above $6 and settle at $6.32. The price continued to move upwards on Tuesday, rising by almost 2% to $6.35. The current session still sees buyers in control, with UNI up by 2.42% and trading at $6.50. If UNI can push above the 20-day SMA, it could test the resistance at $7. A break above $7 could open the doors for a move towards $7.50. Sellers are expected to defend these levels, and if the sentiment turns negative, UNI could drop below $6.
Polkadot (DOT) Price Analysis
Polkadot (DOT) has continued to struggle this week after buyers failed to push above $5 despite a strong showing last week. DOT tanked to multi-year support of $3.60 on August 5 but quickly rebounded thanks to strong demand at lower levels. This allowed it to push back above $4 and reach $4.88 by Thursday. However, buyers lost momentum as demand dried up at higher levels, allowing sellers to wrest control. As a result, DOT fell back in the red on Friday, registering a decline of 1.84% and settling at $4.79. DOT remained bearish over the weekend and ended Sunday by 5.46% at $4.50.
Source: TradingView
The current week began with a 2% increase, but DOT fell back on Tuesday, hitting an intraday low of $4.40. The current session sees DOT marginally down as buyers continue to struggle to establish a foothold. While there is demand at lower levels, DOT is unable to push past $5 and could trade between $4 and $5 unless demand dynamics change substantially.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
