Bitcoin Breaks Above $50,000 Showing Strength Against Weakness in the Stock Market
Unlike the crypto market, US stocks are having a rough October. It has actually been the most volatile month for stocks and historically seen them suffer their two worst crashes.
This week started with the S&P 500 sliding 1.3% and the Dow Jones Industrial Average dropping 0.9%. Tech-heavy Nasdaq also plunged 2.1%. Additionally, Apple tumbled 2.5%, and Microsoft moved down 2.1% while tech giants PayPal, Square, and Nvidia sold off sharply.
On Monday, Facebook also went down, and so did all social networks the company owns, including Messenger, Instagram, and Whatsapp. Facebook’s virtual reality platform Oculus and its business communication tool, Workplace, were down as well.
As we reported, October is seeing a good start for the crypto market, unlike the stock market. Bitcoin has hit $50k, going as far as $50,400 on Tuesday. Ether is currently above $3,400, having risen to $3,475, and the total crypto market cap is standing at $2.28 trillion.
Bitcoin's current strength against weakness in traditionals is one of the most promising developments of 2021. https://t.co/jPZksF5Rb8
— Charles Edwards (@caprioleio) October 5, 2021
As we reported, Bitcoins’ hash rate is also recovering strongly, up 134% since June low to reach 160 Th/s. This week, mining difficulty also increased by 4.71% for the sixth consecutive time since July 31 to climb to 19.89 trillion.
A similar recovery can be seen in the inflows recorded by cryptocurrency investment products and funds. For the seventh straight week, institutional investors put money into the crypto sector, as per CoinShares data.
Inflows to the sector were $90.2 million last week, bringing the total inflows over the past seven weeks to $411 million and $6.1 billion YTD.
Bitcoin accounted for most of these inflows at $69 million for the week ending Oct. 1, recording its third straight week of inflows.
“We believe this decisive turnaround in sentiment is due to growing confidence in the asset class amongst investors and more accommodative statements from the U.S. Securities Exchange Commission and the Federal Reserve,” wrote James Butterfill, investment strategist, at CoinShares.
Ethereum products posted another week of inflows totaling $20 million, despite conceding market share to bitcoin in recent weeks, with its inflows so far this year amounting to $1 billion.
As for other altcoins, it was a mixed week as Polkadot, Tezos, and Binance saw outflows of $800k each. Meanwhile, Cardano and Solana saw minor inflows totaling $1.1 million and $700k respectively. DOT -3.43% Polkadot / USD DOTUSD $ 41.59
-$1.43-3.43% Volume 2.55 b Change -$1.43 Open $41.59 Circulating 987.58 m Market Cap 41.08 b 2 d CME Bitcoin Futures Open Interest Cracks A New ATH, Ethereum Aims for $4k Again 2 d Polkadot Sets Launch Date for Initial Parachain Auctions, DOT Soars 17% Ahead of Crypto Market 4 d Institutions Are Back to Pouring Money into Bitcoin as a “Perfect Storm” Brews for the King XTZ -0.74% Tezos / USD XTZUSD $ 6.88
-$0.05-0.74% Volume 275.35 m Change -$0.05 Open $6.88 Circulating 863.42 m Market Cap 5.94 b 1 d Decentralized Smart Contract Platform, Cypherium, Joins China's BSN to Boost Blockchain Development 1 w ERC-721 Token Transfers on Ethereum Surge to Nearly 10 Million as NFT Sales Hits $10.7B in Q3 1 w Arab Bank Partners With Tezos (XTZ) for Crypto Custody and Staking BNB -2.56% Binance Coin / USD BNBUSD $ 464.34
-$11.89-2.56% Volume 1.95 b Change -$11.89 Open $464.34 Circulating 168.14 m Market Cap 78.07 b 3 d China Update: Binance, OKEx, and Gate Kicks Out CNY & Existing Users, WeChat Blocks Searches, Mining Share Goes to Zero 4 d BSC Is Back in the Game as Binance Announces $1 Billion Incentives Program to Pump the Ecosystem 4 d NFT Deposits and Withdrawals are Now Live on FTX US for Institutional Favorite Solana (SOL) ADA -2.41% Cardano / USD ADAUSD $ 2.18
-$0.05-2.41% Volume 2.54 b Change -$0.05 Open $2.18 Circulating 32.9 b Market Cap 71.61 b 2 d Polkadot Sets Launch Date for Initial Parachain Auctions, DOT Soars 17% Ahead of Crypto Market 4 d Institutions Are Back to Pouring Money into Bitcoin as a “Perfect Storm” Brews for the King 6 d Robinhood Cites Regulatory Actions or Policies Towards Crypto as Business Risk in Filing SOL -1.73% Solana / USD SOLUSD $ 158.24
-$2.74-1.73% Volume 1.78 b Change -$2.74 Open $158.24 Circulating 300.27 m Market Cap 47.51 b 1 d Decentralized Smart Contract Platform, Cypherium, Joins China's BSN to Boost Blockchain Development 3 d New Non-Custodial, Cross-Chain Browser Wallet to Compete with MetaMask by Focusing on DeFi and NFTs 4 d NFT Deposits and Withdrawals are Now Live on FTX US for Institutional Favorite Solana (SOL)
Despite growing and regular inflows, volumes were low at $2.4 billion last week versus $8.4 billion in May 2021.
Interestingly, trading volume at leading crypto exchange Binance soared between July and September despite the crackdown by regulators across the globe.
Spot trading volume at Binance surged to $789 billion in September compared to $454 billion in July, according to CryptoCompare. Derivatives volumes also jumped nearly 25% to $1.7 trillion, the data showed.