In the last 24 hours, Bitcoin saw a rise of 2.1%, while Ethereum increased by 2.7%. Among significant altcoins, BNB, XRP, Solana, Hyperliquid, Dogecoin, and Cardano recorded gains of up to 4%, though Tron experienced a slight decline of 0.3%.
According to Riya Sehgal, a Research Analyst at Delta Exchange, this bounce was prompted by a surge in U.S. stock markets following positive corporate earnings reports. Additionally, a significant decrease in oil prices from above $100 alleviated some inflation and interest-rate pressures that have been impacting risk assets. This rebound also led to a liquidation of short positions, with approximately $125 million in shorts being cleared within just an hour, raising open interest to around $53.9 billion.Also Read |Top 9 equity mutual funds deliver over 20% return on SIP investments in 1 year. Do you own any?
Institutional investments have also seen improvement, with U.S. spot Bitcoin ETFs experiencing net inflows of about $526.6 million on October 19, suggesting that investors are taking advantage of the recent price dip. However, demand for Ethereum ETFs appears to be weaker, as noted by Sehgal.
The total global cryptocurrency market cap rose by 2.1%, reaching $2.88 trillion, as per Coinmarketcap data.
Minal Thukral, Executive VP-Growth & Crypto Business Head at CoinDCX, stated that Bitcoin is consistently maintaining support above the $81,500 mark, which has now shifted to a critical level above $82,700. The fear and greed index has stabilized around 51, reflecting neutral market sentiment. In the past week, Bitcoin fell by 0.4%, and Ethereum dropped by 2.3%. Among key altcoins, XRP, Solana, Dogecoin, Hyperliquid, and Cardano saw corrections of up to 4.6%, while Tron gained 0.4%.
Prateek Gupta, Head of Business at Mudrex, mentioned that Bitcoin’s price hovering around $83,000 is buoyed by a better risk appetite, driven by solid earnings in U.S. equities and nearly a 5% drop in crude oil prices amid expectations of a potential deal between the U.S. and Iran. Institutional interest has also strengthened, with Bitcoin ETFs in the U.S. recording the highest inflows since September 22, totaling $526.6 million.
With the probability of a Federal Reserve rate hike next week estimated at 15–17%, Bitcoin needs to surpass the resistance level of $86,000, while maintaining key support at $80,000, Gupta advised.
Market Analysis
CoinSwitch Markets Desk: Bitcoin briefly touched $83.3K, aided by stronger-than-anticipated Q3 earnings reports and a rebound in U.S. stocks. Following this, Bitcoin stabilized around $82K after encountering resistance at its 21-day moving average of $83,230.
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Vikram Subburaj, CEO of Giottus: Bitcoin is showing signs of recovery near the $83,000 mark, supported by falling oil prices and a positive risk outlook for the broader cryptocurrency market. Nonetheless, ongoing uncertainty regarding the Federal Reserve’s policy directions may still inhibit investor confidence. It’s advisable for investors to refrain from chasing short-term price increases, instead opting for gradual entries while keeping an eye on ETF flows and signals from the Fed before bolstering their position.
Avinash Shekhar, Co-Founder & CEO of Pi42: Bitcoin’s ability to hold above $80,000 for 33 consecutive days indicates a significant resilience in a market affected by fluctuating macroeconomic factors. For investors, a pivotal opportunity may arise when selling pressure starts to diminish, paving the way for a more robust price recovery.
(Disclaimer: The opinions and recommendations expressed by experts are their own and do not reflect the views of The Economic Times)