Cryptocurrency markets soared on Monday on the back of large gains in Bitcoin and Ethereum following a report of stable U.S. producer prices for September. The trading price of Bitcoin rose by 1.8% to $64,023, while that of the second-ranked Ethereum jumped by 2.7% to $2,533. The total market capitalisation of crypto assets also went up by 1.8%. And the market leader dwarfed the rest, with its market cap touching almost $1.2 trillion, which is about half the total crypto market capitalisation. The market was supported by stable producer price index from the U.S., translating as a balance between rising prices for services and falling prices for goods, providing clues for the neutral inflation outlook and fuelling hopes for a Federal Reserve interest rate cut sometime soon.
Further fuel was added to the fire in the cryptocurrency markets as analysts and industry insiders came out with bullish statements on the possibility of a strong Q4 rally. In its report, the CoinDCX Research Team stated: ‘The positive market sentiment around Bitcoin’s prospects, the upcoming US elections and the historical appreciation of Bitcoin in Q4 that transitions into January, makes this the potential level for Bitcoin to breach $70,000 in the upcoming months.’ Analysts have also predicted that with defined resistance and support levels around $2,550 and $2,400, respectively, Ethereum is also likely to trade well in Q4. Other cryptocurrencies such as BNB, Solana, Avalanche, Polkadot and NEAR Protocol were also trading in the green. The trading volume was also dominated by the stablecoins.
While it’s true that Bitcoin recently dropped below the $60,000 psychological level, there is strong support with considerable buy-in at lower levels and a very promising trading volume trajectory. Additionally, as the price of Bitcoin and other cryptocurrencies now more closely correlate to broader economic indicators and issues related to the governance of technology, the resulting tight trading range in the near term offers a very cautiously positive outlook, especially as the focus shifts more towards altcoins. Crypto markets are still tentatively bullish as they navigate the economic and regulatory landscape Still, the trend over subsequent months is likely to extend over the remainder of this calendar year, as the crypto market capitalisation continues to drift higher with UBIT ETF inflows and strong market demand.
Source: Economic Times
