After starting the week just below $60,000, Bitcoin is poised to end it on a higher note, pushing up crypto trading sentiments towards the bullish zone.
After increasing volatility spilling across from the previous week, this week finally saw an improvement in crypto indicators. As a result, the overall crypto outlook looks positive. A lot depends on Bitcoin’s movements as well, which have been volatile. However, Bitcoin seems to have renewed its price strength at its current levels, which has helped improve crypto trading sentiments.
Multiple short-term price fluctuations brought down BTC to around $58,000 twice this week. At the same time, bulls were quick to respond, taking it to $61,000. This tug of dominance between both bulls and bears could also continue next week. At present, with likely lower trading volumes during the weekend, BTC may hover around $60,000.
Meanwhile, speculation continues to grow regarding a crypto rally in September 2024. A few factors strengthen these speculations. First, a rate cut by the US Federal Reserve in September, which is possible, could contribute to it. Second, Bitcoin’s supply in exchanges has decreased relative to earlier months. It could mean long-term holders have increased in the crypto market.
If the latter holds true, then a buildup of positive sentiments could be taking place. This may contribute to a surge in token prices if sell-offs decrease. Moreover, if the current outflows from the spot crypto ETFs stop, a reversal in trends may take place. But broadly, the absence of a big dip in the market indicates the presence of whales being bullish.
Across the crypto and blockchain industry, a slew of developments have taken place this week. A majority of them involve asset management firms getting into the crypto space. While Franklin Templeton has filed for a crypto index ETF, Bitwise has started operations in Europe. Further, DBS Bank has developed a blockchain solution, which could be instrumental for future use cases.
In Abu Dhabi, the local administration has announced plans to create a stablecoin framework. This refers specially for the regulation of fiat-referenced tokens. An Abu Dhabi regulator has published a consultation paper in this regard.
Hence, the steady progress of innovative and adoptive use cases of crypto continues without barriers. Despite uncertainty on global regulations, the industry has been the backbone of a rapidly growing space. However, the future of the crypto market will possibly revolve around regulatory updates in the days to come. Although the regulatory outlook is better, it has much more scope for a global consensus.
The adoption of crypto is also vital to improving crypto indicators. As more individuals and institutions embrace digital assets, the market becomes more mature and less susceptible to sudden shocks.
This week, the following tokens posted the highest gains:
But these tokens saw the biggest losses:
After a long time, MATIC has become the biggest gainer among major crypto tokens.
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