The crypto market is on a bullish momentum as Bitcoin and Ethereum have shown a positive trend. There have been fluctuations in gains and indications of possible bearishness. However, it’s yet to be seen how long the market will be able to retain the ongoing bullish wave.
Bitcoin is holding onto the $23,000 mark and trading at $23,838. It has gained 2.21% in the last 24 hours. Ethereum is up 3.94% and is changing hands at $1,778. The world’s most popular cryptocurrency had made a run to the $24,000 mark yesterday but could not hold on. The global crypto market capitalization, as of August 8, surged to a 1-month high of $1.13 trillion. It added about $18 billion from the $0.95 trillion recorded on July 8. Moreover, Bitcoin has not tempted investors to exit their positions in fear of another leg down.
The percentage of supply that has stayed dormant for three or more years, as per Glassnode data, spiked to a new all-time high of 38.426% on August 8. Experts say BTC bounced off the 20-day exponential moving average on August 7, and the momentum picked up on August 8. Edward Moya, Oanda Senior Market Analyst, says Bitcoin remains near its recent high as crypto traders are looking to see if the crypto winter is over.
Macroeconomics is still very much playing. Jeff Dorman, a chief investment officer of Arca, said all eyes are on the US Consumer Price Index. He highlighted that markets are looking for headline inflation to slow down. Furthermore, signs of peak inflation abound, and commodity prices are declining precipitously from the highs. Investors would be jubilant to know that there is a strong sign of an impending inflation slowdown.