Risk-On Sentiment Sends Crypto & Stock Market to New All-Time Highs as Bitcoin Holds the Line
“60k is merely a psychological resistance” as BTC miners accumulate, on-chain activity gives “strong vote of confidence,” futures premium rises, dollar slides, and OI keeps above $22 billion.
The cryptocurrency market enjoys a strong bull rally as it hits a new all-time high above $2 trillion amidst growing demand from both retail and institutional investors.
But altcoins are particularly enjoying the leading cryptocurrency taking a rest under $60k. This has Ether flying past $2,100 ETH -4.76% Ethereum / USD ETHUSD $ 2,431.67
-$115.75-4.76% Volume 23.66 b Change -$115.75 Open $2,431.67 Circulating 116.32 m Market Cap 282.84 b 2 h Reddit Co-founder Holds 'Quite A Bit' of Ethereum, But Also Invested in Solana, Polygon, & Optimism 3 h Court Denies SEC's Request For Documents Relating To Ripple's Lobbying Efforts 23 h SEC’s 2021 Regulatory Agenda Does Not Include Bitcoin or Crypto , XRP hitting $1 after a long three-year period XRP -3.90% XRP / USD XRPUSD $ 0.84
-$0.03-3.90% Volume 2.77 b Change -$0.03 Open $0.84 Circulating 46.21 b Market Cap 38.61 b 3 h Court Denies SEC's Request For Documents Relating To Ripple's Lobbying Efforts 5 d Largest Korean Exchange Upbit Goes on a Delisting Spree Ahead of New Regulation 6 d Flare Network Raises $11 Million in Funding to Bring Smart Contracts to All Blockchains , and other old crypto coins waking up from deep slumber.
According to trader and economist Alex Kruger, the best-case scenario for the crypto market is a “euphoric bull run into Coinbase listing,” which is to happen next week, to sell in May go away. The coursing of bulls will then lead to their come back in September.
“Merely A Psychological Resistance”
While BTC hasn’t broken its mid-March ATH of about $62k, Glassnode said in its research report that the fact that the largest cryptocurrency held the $1 trillion market cap for one week is a “strong vote of confidence for bitcoin and the cryptocurrency asset class as a whole.”
Glassnode further notes that on-chain activity reinforces Bitcoin’s robust position with over 1.98 million BTC, equivalent to 10.6% of the circulating supply, transacting above the $1 trillion thresholds.
As analyst Mati Greenspan puts it, “60k is merely a psychological resistance.”
As we reported, Bitcoin network fundamentals are also strong, with hash rate and difficulty both hitting new all-time highs. Also, miners have begun to accumulate BTC after selling through Q1 as miner revenue hit a new peak in March and a hat-trick for keeping above the $1 billion levels this year.
All of this is long-term bullish, says Ki Young Ju of CryptoQuant. “Network fundamentals are getting stronger, and those who make the network strong don't cash out Bitcoins to buy new mining rigs. They buy mining rigs with cash, not Bitcoin,” he said.
What’s Happening in Futures?
Meanwhile, in the futures market, open interest across major exchanges continues to stay over $22 billion for almost a week now.
Moreover, the BTC futures premiums on retail-focused platforms are climbing higher this week, widening the institutional platform CME gap.
The funding rate on Bitcoin perpetual contracts has reached 0.1264%, the highest on Bybit. On CME, Bitcoin price is trading just 1.2% higher, as of writing.
Macro is Bullish Too
Just like the Bitcoin market and network are bullish, the macro environment also gives bullish signals as risk appetite makes a return. The S&P 500 and Dow both surged to an ATH over the growing momentum of economic recovery.
Additionally, the dollar has started April on a weak note despite stronger-than-expected monthly payroll data.
After rising along with the Treasury yields this year, the USD index posted its biggest drop in three weeks as hedge funds cut their long positions, but it steadied on Tuesday. This latest weakness, according to strategists, is because USD has “outstripped the pickup in non-U.S. growth expectations” and could further be a sign that the U.S. reflationary advantage compared to other major economies is running out of steam.