Crypto Sentiment Rises As Election Frenzy Picks Up

The emphatic rally in cryptocurrencies continued overnight amidst a rising election frenzy and hopes of political patronage for the digital asset class. Bitcoin touched a high of $66,482 whereas Ethereum recorded a high of $2,653 in the past 24 hours. Expectations that money would flow back from Chinese equities to cryptocurrencies also boosted sentiment amidst a sell-off in Chinese stock markets on Tuesday. Strong flows to Bitcoin ETFs on Monday also supported the crypto market rebound.

Overall crypto market capitalization has jumped more than 2 percent to $2.28 trillion from $2.24 trillion a day earlier. More than 70 percent of the top 100 cryptocurrencies are trading with overnight gains in excess of a percent whereas more than 85 percent of the top 100 cryptocurrencies are trading with weekly gains in excess of a percent.

Bitcoin rallied 2 percent overnight to trade at $65,648.22, around 11 percent below the all-time high. Weekly gains have increased to 5.2 percent whereas gains over the 30-day horizon have gone up to 9.3 percent. Gains in 2024 have also increased to 55.3 percent.

Data from Farside Investors on Bitcoin Spot ETF products in the U.S. showed net inflows jump to $555.9 million on Monday from $253.6 million on Friday, boosting sentiment for the original cryptocurrency.

Ethereum too bounced 3.5 percent in the past 24 hours to rise to $2,610.26, around 47 percent below the previous peak. Weekly gains have increased to 7.6 percent whereas gains over the 30-day horizon exceed 8 percent. Gains in 2024 have also increased to more than 14 percent.

Data from Farside Investors on Ethereum Spot ETF products in the U.S. showed net inflows of $17 million on Monday versus net outflows of $0.1 million on Friday.

With a market capitalization of $1.30 trillion, Bitcoin dominates 56.8 percent of the overall crypto market. Ethereum which enjoys a market capitalization of $314 billion follows with a market share of 13.8 percent. Amidst a renewal in risk appetite, the market capitalization of stablecoins has decreased to $172.2 billion or 7.53 percent of the overall crypto market.

4th ranked BNB (BNB) added 1.3 percent overnight, clocking weekly gains of 2.4 percent at its current trading price of $586.02.

5th ranked Solana (SOL) added 1.3 percent overnight, increasing weekly gains to 7.6 percent. SOL is currently trading at $154.42.

7th ranked XRP (XRP) has added 1.4 percent overnight and 3 percent in the past week to trade at $0.545. The cryptocurrency issued by Ripple Labs is however saddled with losses of of more than 11 percent on a year-to-date basis.

8th ranked Dogecoin (DOGE) rallied more than 3 percent overnight and 7.6 percent in the past week to trade at $0.1158.

9th ranked TRON (TRX) however slipped 0.9 percent overnight to trade at $ 0.1586. TRx has however gained 1.8 percent in the past week.

10th ranked Toncoin (TON) edged up 0.3 percent overnight, lifting weekly gains to 1.4 percent. TON is currently trading at $5.28.

91st ranked cat in a dogs world (MEW), a Solana-based meme coin and 62nd ranked Ethena (ENA), a synthetic dollar protocol built on Ethereum topped overnight gains with a surge of more than 15.5 percent. 99th ranked Book of Meme (BOME), 14th ranked Bitcoin Cash (BCH), 57th ranked Worldcoin (WLD), 42nd ranked Fantom (FTM) and 76th ranked Notcoin (NOT) all added more than 10 percent in the past 24 hours.

24th ranked Bittensor (TAO) is the greatest laggard with an overnight decline of close to 3.4 percent. 35th ranked dogwifhat (WIF) followed with overnight losses of 2.5 percent.

Meanwhile in the past week, the U.S. elections that are drawing closer dominated digital asset market sentiment more than the Fed’s monetary policy easing which has witnessed a sharp repricing in expectations. Amidst the renewed focus on the political realm than on the monetary side, digital asset fund flows also witnessed the shift.

The CoinShares’ Digital Asset Fund Flows Weekly report showed inflows of $407 million during the week ended October 11 as compared with outflows of $147 million during the previous week. Year-to-date flows have increased to $23.9 billion. According to the report, Bitcoin topped flows by asset, iShares ETF topped flows by provider and United States topped flows by country during the past week.

Bitcoin-based products dominated with inflows of $419 million. Ethereum-based products however recorded outflows of $9.8 million. Multi-asset products received inflows of $1.5 million followed by XRP-based products that recorded inflows of $1.1 million. Short Bitcoin products recorded outflows of $6.3 million.

More than 80 percent of the cumulative AUM of $86.7 billion is attributed to Bitcoin products that account for an AUM of $70 billion. Bitcoin’s dominance of crypto market is much lower, at around 57 percent. AUM of Ethereum products stood at $9.9 billion. Multi-asset portfolios command assets under management of $4.4 billion. An AUM of $1.2 billion is attributed to Solana-based products and $566 million to Binance-based products.

The provider-wise analysis of flows inter alia shows inflows of $158 million to iShares ETF followed by $138 million to Fidelity ETF. Bitwise ETF as well as Ark 21Shares each recorded inflows of around $35 million. Grayscale Investments however recorded outflows of $65 million.

iShares ETF tops with a cumulative AUM of $23 billion implying a share of 26.5 percent. Though year-to-date outflows are more than $19.6 billion, Grayscale Investments still accounts for an AUM of $19.9 billion, which is 23 percent of the cumulative AUM of $86.7 billion. Fidelity commands an AUM of $11.4 billion, followed by ARK 21Shares and 21Shares that have both mobilized assets under management in excess of $3 billion. The top 3 viz iShares, Grayscale Investments and Fidelity account for more than 62.5 percent of the total AUM.

The country-wise analysis shows weekly inflows of $406 million to United States. Canada recorded inflows of $4.8 million followed by Australia that received inflows of $2 million. Sweden recorded outflows of $3.9 million.

Of the year-to-date flows of $23.95 billion, United States accounts for $23.86 billion. Canada, Germany and Sweden have recorded negative flows over the year-to-date period.

Of the cumulative AUM of $86.7 billion, $65.5 billion or 75.6 percent is in United States. Switzerland follows with AUM of $4.8 billion whereas Canada accounts for an AUM of $4.3 billion. Germany accounts for an AUM of $3.6 billion followed by Sweden with an AUM of $2.7 billion.

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