Institutional Adoption: The crypto realm experienced its initial wave of institutional adoption between 2020 and 2021, marked by institutions integrating bitcoin into their balance sheets. CryptoQuant’s report suggests that the subsequent wave might be characterized by financial institutions offering their clientele bitcoin access via spot ETFs. Notably, several prominent financial entities have already submitted applications to launch spot Bitcoin ETFs in the U.S., with potential approvals anticipated by March 2024.

Comparative Analysis: The prospective influx from spot ETFs is predicted to dwarf the investments that previously flowed into the Grayscale Bitcoin Trust (GBTC), the globe’s most substantial cryptocurrency fund, boasting a whopping $16.7 billion in assets under management. CryptoQuant’s analysis indicates that if the current ETF applicants allocate merely 1% of their Assets Under Management (AUM) to these ETFs, the bitcoin market could be enriched by an approximate $155 billion. This influx would equate to nearly one-third of bitcoin’s existing market cap, potentially propelling its price to a range of $50,000 to $73,000.

Historical Perspective: Drawing from past bull markets, bitcoin’s market capitalization has typically expanded 3-5 times its realized capitalization. This pattern implies that for every dollar of new investment in the bitcoin market, the market cap could amplify by $3-$5.

Market Reactions: A recent surge in Bitcoin’s price to $30,000 was triggered by an erroneous report from Cointelegraph, claiming the approval of a spot bitcoin ETF. Despite the inaccuracy, the bullish momentum seems to persist, deterring potential short-sellers. Markus Thielen, Matrixport’s head of research and strategy, commented on the prevailing optimism, emphasizing the reluctance to short BTC in the foreseeable future.

Current Market Status: The crypto market first breached the $1 trillion threshold in January 2021. As of the latest data, the total market cap hovers at $1.13 trillion, with bitcoin dominating over half of this figure.

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The weekly chart displays that TOTAL CAP has been falling since reaching an all-time high of $2.96 Trillion (Tn) on Nov 10. Further, it will fall l culminated with a low of $1.92 Tn on Dec 4.

Later, TOTAL CAP bounced, leaving a long lower wick in place. Further, most importantly, the wick was created inside the $1.85 – $2.07 Tn support area made by the 0.5-0.618 Fib retracement support level.

But technical indicators offer a neutral look. 

Moreover, the MACD, which is created by a short- and long-term moving average (MA) is crashing but is still positive. This means that the short-term MA is speeding up, it is still faster than the long-term one.

At the same time, RSI is falling but is above 50. Basically, the RSI is a momentum indicator, and movements above/below 50 are considered signs of a bullish/bearish trend

In addition, cryptocurrency trader @AltstreetBet tweeted a TOTAL CAP chart, stating that an increase towards $2.6 Tn is expected.

Also, the daily chart does provide a more bullish outlook. This is noticeable from the bullish divergence in both the RSI and MACD. This is an occurrence that very often precedes bullish trend reversals. Therefore, it is possible that an upward movement will follow.

Presently, there is resistance at $2.37 Tn, created by a descending resistance line and horizontal resistance area.

If TOTAL CAP is successful in breaking out from the resistance line, the next horizontal resistance level would be at $2.63.

In addition, the Altcoin market cap (ALTCAP) provides a nearly identical outlook. The outlook is with the same bullish divergence present in both the RSI and MACD.

The post Cryptocurrency TOTAL CAP Bounces After Sharp Decline appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.

Santiment, an on-chain metrics provider, explained:

“Bitcoin dominance has been on a major rise the past couple of days, and $54.6k has been breached for the first time since May 12th. Our NVT Token Circulation model is indicating October is the first month we’re seeing a bullish divergence since February.”

Previously, Santiment said that Bitcoin’s price could witness a surge because its circulation had reached the levels same as July. Their remarks pointed out that Bitcoin’s price is positively related to circulation.

When asked about witnessing ATH price in the Bitcoin market. Lex Moskovski, CIO of Moskovski Capital said:

“Record amount of Bitcoin has been moved in the last 2 weeks. Something’s brewing. Gun to head, ATH may happen sooner than we think.”

Moskovski believes that the current high record of Bitcoin can send its price and market capitalization through the roof. The last ATH (all-time high) price of $64.8K was set in April, and there are chances we get to see this again.

After scaling above the $52K level, Bitcoin breached its significant resistance area. A data analytic firm IntoTheBlock made the following remarks about it:

“Bitcoin surpasses once again the $52K barrier for the first time since September 7th. The IOMAP reveals strong support right below $50K while approaching a highly contested area around $52,938. At this range, over 353.78K addresses previously bought 212,000 BTC.”  

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However, not only the two largest cryptocurrencies have seen a price increase. Binance Coin (BNB), the third-largest crypto, is up by over 10% in the past 24 hours. In addition, it is up by almost 40% in the past 7 days, per CoinMarketCap.com data. The fifth and the sixth-ranked cryptos Polkadot (DOT) and Ripple’s XRP increased in price by over 31% and 50% in the past 7 days, respectively.

Increasing cryptocurrency adoption could be the reason why Bitcoin and altcoins post gains. Two of the world’s leading investment banks, Goldman Sachs and Morgan Stanley, started offering access to digital assets for their wealth management clients. Payment networks Visa and PayPal have introduced crypto payment support. Moreover, automaker Tesla started accepting Bitcoin for payments in the U.S.

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