Week of October 22-28, 2024
Spot Bitcoin ETFs net inflows have surpassed $20 billion for the first time in just 10 months. In comparison, gold took five years to reach a similar milestone. The inflows into Spot Bitcoin ETFs began to increase significantly since October 11.
Last week, Spot Bitcoin ETFs experienced the largest inflows since early March, with over $2.1 billion in total. Currently, Bitcoin (BTC) onchain holdings are valued at over $66.1, which represents 4.89% of Bitcoin's total market capitalization.
The U.S. SEC has approved the applications of the New York Stock Exchange (NYSE) and the Chicago Board Options Exchange (CBOE), to allow 11 Spot Bitcoin ETF managers to use tools such as options contracts to trade Bitcoin for profit strategies and risk management.
JPMorgan analysts, in their report "Alternative Investments Outlook and Strategy," forecast a continued positive outlook for the digital asset market through 2025, citing global risk factors like geopolitical issues that could drive the prices of gold and Bitcoin. However, Ethereum (ETH) may not benefit positively from this trend.
Grayscale has released a list of 35 tokens under consideration for a trust fund, categorized into areas such as smart contracts and DeFi, including tokens like Dogecoin (DOGE), Worldcoin (WLD), Pyth (PYTH), and Rune (RUNE). Currently, Grayscale provides a total of 30 trust funds for alternative coins (Altcoins).
The number of transaction validators on the Ethereum blockchain has grown by over 30% in the past year, exceeding 1,000,000 for the first time in June. This increase was driven by growing interest from institutional investors. Additionally, the total amount of staked Ethereum (ETH) also rose by more than 27% in the past year, surpassing 34.7 million ETH for the first time in September.
Aspen Digital reported that 76% of personal financial advisory firms in Asia have already invested in digital assets, while another 18% plan to make investments in the future. Furthermore, survey respondents expressed a positive outlook on Bitcoin for the end of 2024, with 31% expecting the price to reach $100,000 by year-end.
Bitcoin (BTC) has hit its resistance level at $69,000, with enough momentum to test the previous all-time high of $74,000. After that, a pullback may occur to consolidate and build up for a new peak. This week, the support level is at $66,500, providing speculators a chance to buy on the dip.
Ethereum (ETH) has been underperforming relative to Bitcoin (BTC), but it is starting to break out of its stagnant triangle pattern. There is potential for further upward movements, with a key resistance level at $2,850 that would confirm an uptrend. On the other hand, if the price pulls back further, then support can be found at $2,520.
ApeCoin (APE) has generated extremely generous returns of 108.53% in the past week, through a strong and rapid price surge. This week, it may enter a consolidation phase, with a resistance point at $1.40. It's advisable to wait for a better entry point rather than chase the price. If the consolidation phase concludes, the next resistance target will be at $1.90.
DYDX returned 25.75% in the past week, surging past the key resistance level of $1.12, which will now serve as the support level. It’s recommended to buy on dips as long as the price stays above this level. The resistance target for this week is set at $1.46.
Buying pressure for Bitcoin (BTC) through Spot Bitcoin ETFs in the past week reached its highest levels since March. This recent surge has served as a key driver for the ongoing price increase. There may also be speculative interest stemming from polling data in the U.S. presidential election, between Donald Trump and Kamala Harris in several polls, boosting market confidence.
Bitcoin has delivered 7% returns in October after a negative beginning of the month. Historically, Bitcoin tends to achieve double-digit returns during this period.
Despite Bitcoin’s continuous rise and BTC dominance hitting a new peak, the index for alternative coins (Total3) has also been increasing, indicating that buying interest in altcoins is growing as well.
There has been a resurgence of speculation in the Metaverse, NFT, and GameFi sectors over the past week. Additionally, other coin categories are showing signs of recovery and positive price reversals, suggesting it may be time to gradually invest in altcoins.
The investment strategy should focus on finding altcoins with solid fundamentals which have not experienced any significant price increase yet. The market appears to have positive momentum leading up to the U.S. presidential election in early November, which may introduce some volatility.
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