Originally published on: October 15, 2024
The crypto market witnessed a significant surge on Oct. 15, defying mixed reactions to China’s stimulus package and benefiting from a recovery in US equities that reignited hopes for a strong October.
In the past 24 hours, the total crypto market capitalization increased by 2.2% to reach $2.3 trillion, driven by notable gains in Bitcoin and Ether, which rose by 2.5% and 3.8%, respectively.
This rally in the crypto market mirrored the strength seen in US equities, with the S&P 500 hitting a new all-time high on Oct. 14. The stock index has been performing well this month, with a 2.6% increase month-to-date, showcasing the positive sentiment among investors in the US market.
The resurgence of interest in the tech and artificial intelligence sectors was evident as Nvidia’s stock price reached a new all-time high on Oct. 14. This bullish trend is expected to extend to tokens in the AI industry and other cryptocurrencies.
Investors are now focusing on the upcoming Federal Reserve decision scheduled for Nov. 6 and Nov. 7, with expectations of a rate cut, albeit less aggressive than the previous one. This anticipates keeping the market on edge as traders await further clarity on the Fed’s monetary policy.
Moreover, there has been an increase in bullish sentiment among spot Bitcoin exchange-traded fund (ETF) traders and investors, with substantial inflows recorded in ETFs over the past week.
Institutional demand for crypto investments has been on the rise, as reflected in inflows of $407 million during the week ending Oct. 11, further boosting market optimism.
Additionally, data from CoinGlass shows a significant increase in short liquidations within the derivatives market, with short traders witnessing notable losses in the last 24 hours compared to long traders.
From a technical perspective, the crypto market cap of all cryptocurrencies is trading within a bullish flag pattern, suggesting a potential uptrend continuation. Achieving a daily candlestick close above the key resistance level at $2.23 trillion would signal a breakout, paving the way for a rally towards higher levels.
As investors navigate these volatile markets, it is essential to conduct thorough research and assess risks before making any investment decisions. Stay tuned for more updates on the crypto market and investment opportunities.
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