Bitcoin (BTC) is back above $60,000 after registering an increase of over 3% in the past 24 hours as optimism around a Fed rate cut grew. Other cryptocurrencies, including Ethereum (ETH), Uniswap (UNI), FET, SUI, Aptos (APT), and Bittensor (TAO), registered notable gains. However, Solana (SOL), Ripple (XRP), Dogecoin (DOGE), and Toncoin (TON) remained in the red, registering notable drops.
In a related development, spot Bitcoin ETFs saw a surge, adding $250 million worth of Bitcoin in a single day, the most in a single day since over a month. As a result, BTC jumped above $61,000 before settling around the $60,000 mark. The jump back above $60,000 means BTC is up over 7% in the past week.
Bitcoin ETFs See Inflows, ETH ETFs Continue Struggle
According to the latest available data, spot Bitcoin ETFs saw nearly $13 million in gains on Monday, while spot Ethereum ETFs saw a decline of $9.5 million. BlackRock’s IBIT led the charge among spot Bitcoin ETFs, pulling in over $15 million, bringing its total net inflows since January 11 to almost $21 billion. Fidelity’s FBTC was a close second, pulling in just over $5 million, while Franklin Templeton’s EZBC saw inflows of $5.04 million. Grayscale’s Bitcoin Mini Trust saw $2.82 million added, and VanEck’s HODL secured $4.91 million worth of inflows.
On the other hand, spot Ethereum ETFs are struggling and saw outflows of $9.51 million across funds. BlackRock’s ETHA and Grayscale’s Ethereum Mini Trust were the only ones that registered inflows, pulling in $4.16 million and $2.29 million, respectively. Other major Ethereum ETFs mainly remained neutral, while Grayscale’s ETHE saw a loss of $13.83 million.
Spot Bitcoin ETFs Are Buying
Spot Bitcoin ETFs acquired $250 million worth of BTC on Monday, the most in over a month. Spot Bitcoin ETFs have been steadily increasing their holdings, sparking speculation about what is driving the recent uptick. The most likely factor could be the potential impact of the Federal Reserve’s rate cut meeting, with interest rates expected to be cut for the first time since March 2022. BTC products reversed weekly outflows, with inflows of $436 million following outflows totaling $1.2 billion. The jump in inflows can be attributed to expectations of 50 bps interest rate cut on September 18. Despite BTC trading above $60,000 and ETH back above $2,300, markets remain jittery.
Japan Reconsidering Crypto Rules
Japan is reportedly considering loosening its crypto rules as a growing number of firms explore blockchain technology. While Prime Minister Fumio Kishida has prioritized Web3, it remains to be seen if his successor would favor regulatory adjustments to crypto. Under Prime Minister Kishida’s leadership, Japanese regulators made it easier to list tokens. The country also drafted stablecoin rules and developed a framework for crypto exchanges to protect investors.
Japanese firms exploring blockchain initiatives include Sony, Nippon Telegraph and Telephone, Mitsubishi UFJ Financial Group, and Toyota Motor. This week, Sony Block Solution Labs and Circle announced a collaboration to drive innovation and creativity through decentralized technologies on the Soneium blockchain ecosystem.
“By integrating Circle’s financial infrastructure with Soneium, we are set to redefine the landscape of digital entertainment and finance.”
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) is up over 3% as expectations increase that a rate cut by the Federal Reserve could boost demand for cryptocurrencies. BTC climbed above $61,000 late on Tuesday in a significant intra-day increase before settling around $60,000. The asset is currently trading just below the $60,500 level, with buyers firmly in control. The odds of a 50 bps rate reduction stood at 55% on Wednesday, with traders fully pricing in a quarter-point worth of easing.
“I think a combination of increasing correlation between crypto and traditional markets recently” is driving the price of Bitcoin higher.”
Additionally, MicroStrategy’s announcement that it was planning to sell convertible notes to purchase more BTC added optimism around the world’s largest cryptocurrency. With BTC trading above key levels, investors are eying higher highs, around $65,000. Analysts at Bitfinex have stated that a smaller rate cut of 25 basis points could foster optimism in the markets, while a more significant rate cut of 50 basis points could lead to uncertainty.
BTC encountered a slump over the weekend after registering an impressive increase of almost 4%, which took it above the 20-day SMA, the 50-day SMA, and the $60,000 level to $60,479. However, with sellers active at this level, buyers lost steam over the weekend as BTC dropped back below $60,000 on Saturday, settling just above the 50-day SMA at $59,949. Selling pressure increased on Sunday as BTC slipped below the 50-day SMA after a drop of 1.31% to settle at $59,165. The decline continued on Monday with a decline of 1.69%, which pushed BTC to $58,164.
Source: TradingView
BTC has strong support at $58,000, and demand picked up on Tuesday thanks to several market factors, such as ETFs picking up $250 million worth of BTC and positive expectations around the rate cut. As a result, buyers flooded the market, and BTC registered a jump of almost 4%, moving back above the 50-day SMA and the $60,000 level to $60,321. Buyers also attempted a move above $61,000, as seen in the price chart, but were thwarted. The current session sees BTC marginally up as buyers look to consolidate above $60,000 in anticipation of the rate cut. Should the rate cut positively impact the markets, we could see BTC surge considerably and push above the 200-day SMA to $65,000. However, a larger rate cut could sow seeds of uncertainty in the market, and we could see BTC slip below $60,000 to $58,000 or $55,000. If sentiment turns negative, BTC could drop as low as $50,000.
Ethereum (ETH) Price Analysis
Ethereum (ETH) climbed above $2,300 after an increase of just under 1.50%, registering a notable recovery along with BTC. While it may have reclaimed $2,300, ETH is bogged down by a stubborn resistance at $2,400, preventing any move past this level. A downward-sloping 20-day SMA is also indicative of the bearish sentiment around ETH. Despite the bearish pressure, ETH’s support of $2,300 has remained stable despite being tested on numerous occasions in September. Looking at the price chart, we see ETH pushed above $2,400 on Friday, rising to $2,442 after an increase of 3.34%.
Source: TradingView
However, with sellers active at this level and the 20-day SMA coming into play, ETH fell back on Saturday, dropping to $2,420 after a drop of 0.91%. Selling pressure intensified on Sunday as sellers pushed ETH below $2,400. ETH eventually registered a decline of 4.21% to settle at $2,318. The current week began with ETH continuing to drop, as it registered a drop of 0.95% to slip below $2,300 and settle at $2,296. However, sellers lost steam as demand picked up, allowing ETH to recover on Tuesday. As a result, ETH registered an increase of just over 2% and settled at $2,343. Buyers also attempted a move above $2,400 but were thwarted, managing to reach a high of $2,393 before dropping back. The current session sees ETH down marginally as buyers and sellers look to take control of the session.
ETH must push above $2,400 for sentiment around the asset to change. However, it has been unable to do so despite several attempts. Buyers, on their part, must defend the $2,300 level to defend a further slide. Should this level be breached ETH could drop as low as $2,100.
Solana (SOL) Price Analysis
Solana (SOL) is struggling to stay above $130, with the 20-day SMA acting as a dynamic level of resistance and preventing a move towards $140. As a result, SOL has faced incredible volatility this week, as buyers defended the support level while sellers attempted to drive it below $130. SOL faced significant selling pressure on Friday as sellers drove the price to a day low of $131. However, it rebounded quickly as demand picked up at lower levels, eventually pushing above the 20-day SMA and settling at $139.
Source: TradingView
However, sellers took control over the weekend, with SOL dropping 1.41% on Saturday and 4.20% on Sunday, slipping back below the 20-day SMA and settling at $131. With SOL close to its support level, buyers and sellers fought an intense battle to gain control, which heightened volatility on Monday. In the end, buyers prevented a drop below $130 but could only manage a marginal increase. Buyers attempted a recovery and a push to $140 on Tuesday but were thwarted, as sellers dragged the price back below the 20-day SMA, with SOL managing only a marginal increase yet again.
The current session sees SOL marginally down as sellers look to retake control and drive SOL below $130. Buyers will actively defend $130 to prevent a drop to $120 or lower. On the other hand, if buyers can manage to push above the 20-day SMA, it would indicate that bears are losing grip. In such a scenario, SOL could test the resistance at $140.
Polkadot (DOT) Price Analysis
Polkadot (DOT) has continued to decline as hopes of a push above $4.50 fade once more after promising signs last week. DOT was relatively positive last week and pushed above the 20-day SMA on Friday after an increase of 3.02% to $4.43. Despite strong resistance at $4.50 and the 50-day SMA also coming into play as a dynamic level of resistance, DOT managed a marginal increase of 0.23% on Saturday. However, it fell back in the red on Sunday after a failed push above the 20-day SMA, as sellers took over and pushed DOT down by 0.90% to $4.40.
Source: TradingView
DOT continued to plummet on Monday, dropping by 4.55% to settle at $4.20. Once again, buyers attempted a recovery on Tuesday but could not do so, as buyers pushed DOT below the 20-day SMA to $4.16. The current session sees DOT down by just over 1.20% as sellers continue to drive the price lower. If sellers retain control, DOT could drop to $4, a level with strong support. We could see a rebound from this level, but the extent of the rebound would depend on whether DOT can push above the 20-day SMA once again.
Dogwifhat (WIF) Price Analysis
Dogwifhat (WIF) is trading between $1.40 and $1.60, with neither buyers nor sellers able to dictate substantial price movements for now. WIF has seen demand pick up at lower levels but is witnessing selling at rallies. As we can see in the price chart, it is also experiencing considerable volatility despite being confined to a narrow price range. WIF pushed above the 20-day SMA and $1.60 on Friday but quickly fell back due to growing selling pressure. After Friday’s increase of 5.02%, WIF dropped by 4.29% on Saturday and 4.24% on Sunday, slipping back below the 20-day SMA and ending the weekend at $1.50.
Source: TradingView
Sellers attempted to push WIF lower on Monday, but buyers countered the selling pressure, with the price registering a marginal increase. Tuesday saw an increase of just under 2% as WIF attempted a move past the 20-day SMA. However, such a move failed to materialize, with WIF back in the red during the ongoing session. Sellers will look to drive WIF to its support level of $1.40, which buyers are expected to defend. If sentiment changes and WIF can push above the 20-day SMA, it could retest the resistance at $.160.
Ripple (XRP) Price Analysis
Ripple (XRP) has struggled after reaching $0.60, with the price falling close to its support level at $0.56. The asset has been down almost 2% over the past 24 hours, but it remains positive if we look at the numbers for the previous week. After pushing above the 50-day SMA on Friday, XRP continued its upward trajectory on Saturday, registering an increase of almost 4% to settle just short of $0.60. With strong resistance at this level, XRP fell back considerably on Sunday, dropping by 4.04% to $0.57, where the 500-day SMA acted as a dynamic level of support.
Source: TradingView
This allowed XRP to counter the selling pressure and register an increase of 2.60% on Monday to move to $0.58. However, sellers took over on Tuesday as XRP registered a marginal drop. The current session sees the price down by 1.52%. If XRP continues to drop, we could see the price drop below the 50-day SMA to $0.55. However, if it rebounds and buyers gather momentum, we could see another retest of the resistance at $0.60.
Toncoin (TON) Price Analysis
Toncoin (TON) is struggling to push above the resistance at $5.60, with buyers facing intense selling pressure. TON got rejected from the $6 level on Friday as buyers lost steam at upper levels after demand dried up. As a result, TON settled at $5.81, an increase of 5.81%. However, as selling pressure intensified, TON fell over the weekend, dropping by 2.38% on Saturday and 2.24% on Sunday to settle at $5.55. The current week began with sellers continuing to exert control as TON fell to a day low of $5.39 before recovering and settling at $5.47.
Source: TradingView
TON attempted a move past $5.60 on Tuesday as it rose to a high of $5.59. However, it could not do so and eventually settled at $5.50 after an increase of 0.56%. The current session sees TON marginally down as buyers and sellers look to establish control and dictate the price. A push above $5.60 could result in another move towards $6. However, if sellers continue to exert control, TON could drop to $5.30, where the 20-day SMA is currently positioned, or even lower to its $5 support level.
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.
