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 0.37% Polkadot / USD DOTUSD $ 9.34
$0.030.37% Volume 535.65 m Change $0.03 Open $9.34 Circulating 1.11 b Market Cap 10.34 b 7 mon Bitcoin and Ether Breaks Trend With Outflows While Altcoins Continue to See Inflows 7 mon SBI Holdings to Launch Japan’s First Crypto Fund; Including BTC, ETH, DOT, LINK, LTC, XRP & BCH 8 mon Solana Unaffected by Price Jitters while Bitcoin, Ether, Polkadot, and Cardano Post Outflows XTZ -0.51% Tezos / USD XTZUSD $ 1.91
-$0.01-0.51% Volume 28.12 m Change -$0.01 Open $1.91 Circulating 904.99 m Market Cap 1.72 b 8 mon Ubisoft’s “Building Block” For Its Metaverse Is Through In-Game NFTs In Partnership with Tezos (XTZ) 8 mon Coinbase Cloud wanting to be the “AWS of Crypto,” Amasses $30 Billion in Staked Assets 8 mon NFT Mania: Adidas Buys a Bored Ape, Animoca Brands Partner with BSC, Blockchain.com to Make NFT as Accessible as Crypto BNB -0.52% BNB / USD BNBUSD $ 324.50
-$1.69-0.52% Volume 993.26 m Change -$1.69 Open $324.50 Circulating 161.34 m Market Cap 52.35 b 7 mon SEC Rejects Another Spot Bitcoin ETF, Binance Announces New System to Remove BNB from Circulation 7 mon BitMEX Launches BMEX Token for Active Users, US Not Eligible for Airdrop 7 mon Crypto Outliers: Terra (LUNA) Amasses $16.9 Bln & Surpass BSC, Avalanche (AVAX) Aims for 1 Million Daily Transactions ADA 0.36% Cardano / USD ADAUSD $ 0.54
$0.000.36% Volume 539.28 m Change $0.00 Open $0.54 Circulating 33.75 b Market Cap 18.1 b 7 mon Bitcoin Is Back Above $51k and Ether $4,100 as The Cryptocurrency Market Goes Green 7 mon Bitcoin and Ether Breaks Trend With Outflows While Altcoins Continue to See Inflows 7 mon Solana (SOL) Bucks the Trend, Along With Tron (TRX), by Recording Highest Inflows After Bitcoin (BTC): Report SOL 3.04% Solana / USD SOLUSD $ 44.64
$1.363.04% Volume 1.09 b Change $1.36 Open $44.64 Circulating 348.71 m Market Cap 15.57 b 7 mon Coinbase Predicts Substantial Growth of Newer L1 Chains & Institutionalization of Regulated DeFi 7 mon Bitcoin and Ether Dump More Going Into Year-End, ETH Killers Showing Great Momentum 7 mon Bitcoin and Ether Breaks Trend With Outflows While Altcoins Continue to See Inflows
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.