Crypto Analysis

Crypto Market Up 7% as Evergrande Group Lands Domestic Debt Deal

Market cap stood at $1.98 trillion, up by 6.6 per cent, trade volumes across exchanges declined by 15 per cent

Crypto Market Up 7% as Evergrande Group Lands Domestic Debt Deal
Crypto Market Up 7% as Evergrande Group Lands Domestic Debt Deal

The crypto market had a strong relief bounce yesterday along with other financial markets as China’s Evergrande Group agreed to settle interest payments on a domestic bond preventing further global selloff by traders. The recovery was aided by the US Federal Reserve’s signaling of raising interest rates soon. The total crypto market cap stood at $1.98 trillion, up by 6.6 per cent early on Thursday. Trade volumes across exchanges declined by 15 per cent over the same period.

After hitting a September low of $39,600 yesterday, Bitcoin (BTC) climbed by 4.3 per cent today to close the day at $44,010. BTC found a confluence of support from the 100-day moving average and 20-week moving average at $40,700 materialising in a strong rebound. However, BTC trade volumes plunged by 20 per cent from the previous day. BTC’s short-term resistance remains at $43,000 while the next major resistance is at $45,400. A stronger rebound by key altcoins has meant that BTC dominance is now at 41.9 per cent, down 1 per cent from yesterday.

Ethereum (ETH) banked on short-term market sentiment by gaining 8 per cent to break the psychological barrier of $3,000 today. ETH is currently trading near $3,100 at the end of the day. Its support levels are forming at $3,050 and $3,000 while its resistance remains at $3,150.

All top 20 cryptocurrencies, excluding the dollar, pegged stable coins, marched forward with Terra (LUNA) taking the lead with a 29 per cent gain today followed by Cosmos (ATOM) with a 20 per cent gain. Cardano (ADA) climbed by 10 per cent after receiving support at its 100-day exponential moving average. The rest of the pack registered gains between 6-15 per cent.

With global markets feeling reassured, BTC and key altcoins are likely to maintain the recovery phase for the short term. However, the low volumes are a cause for concern as it generally precedes a pullback in the market. Analysts expect at least one pullback before BTC surges beyond $50,000. All eyes are on BTC to maintain a weekly close above its 20-week moving average at $40,700 in the upcoming days.

Top Gainers today:

  1. Arweave (AR): 35.2%
  2. Terra (LUNA): 29.0%
  3. Cosmos (ATOM): 20.0%

Top Loser today*:

  1. Bitcoin SV (BSV): -0.1%

The analysis includes the top 100 cryptocurrencies only as of 9 am

*All other coins have gained except BSV

Source: CoinMarketCap

Crypto News at a Glance:

  1. Robinhood, a US-based trading app, has announced plans to add crypto wallets for certain users by October enabling them to deposit and withdraw cryptocurrencies in the app. Users can buy and sell cryptocurrencies in Robinhood as of today.
  2. The Royal Monetary Authority of Bhutan has partnered with Ripple (XRP) to pilot its CBDC (central bank digital currency) intending to improve cross-border transactions and expand financial inclusion in the country.
  3. Global crypto exchange Binance has suspended futures and options trading along with access to leveraged tokens in Australia to comply with local regulations. Customers have been given 90 days to close their positions.
  4. Snoop Dogg has revealed himself to be a previously unidentified NFT whale with over $17 million in the collection. Snoop’s collection features some of the highly sought-after CryptoPunks, Meebits, and Art Blocks NFTs.
  5. One River Digital, a crypto-focused hedge fund offering exposure to Bitcoin and Ethereum, has raised $41 million in a Series A financing round from investors, including Goldman Sachs and Coinbase Ventures.
DISCLAIMER: Views expressed are the author’s own, and Outlook Money does not necessarily subscribe to them. Outlook Money shall not be responsible for any damage caused to any person/organisation directly or indirectly.

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Outlook Money
February 2024