The crypto market has made an impressive recovery, bouncing back to a $2 trillion market cap despite recent turmoil. This resurgence is led by significant inflows and price recoveries in major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH). Here’s a detailed look at the factors driving this incredible turnaround.
Permanent Holders Drive Demand
Recent on-chain data reveals a substantial increase in Bitcoin accumulation by permanent holder addresses, indicating a possible shift in market sentiment. Over the past 30 days, 404,448 Bitcoin, valued at nearly $23 billion, has been moved to these addresses, suggesting a strong accumulation trend. These large holders, often referred to as whales, are known for their long-term investment strategies. Their recent activity mirrors patterns seen in previous years when similar behavior led to significant price rallies.
Today’s Crypto Prices
Today’s crypto prices have managed to retain recent gains, sparking optimism among investors globally. Bitcoin’s price is resting at the $56K mark after briefly touching $57K, while Ethereum traded around $2,500. Solana surged nearly 10% in the past 24 hours, and XRP also traded in the green. The global crypto market cap has risen by 1.66% to $2 trillion, although the total market volume has decreased by 49.85% to $104.79 billion.
BlackRock Ethereum ETF Leads Inflows
Despite global macro headwinds, spot Ethereum ETFs have seen strong inflows, with BlackRock’s ETHA leading the pack. On August 6, the BlackRock Ether ETF netted over $108 million in inflows, with a total of $160 million over two days, placing it among the top 10% of ETF launches in 2024. Additionally, the US Federal Reserve’s actions and market expectations have influenced these positive movements.
Ethereum’s Bullish Momentum
Ethereum price started a recovery wave above the $2,350 resistance zone and is currently eyeing the $2,680 resistance level for further gains. The price is trading below $2,640 and the 100-hourly Simple Moving Average, but a steady rise is expected if it clears the $2,680 hurdle. Key resistance levels to watch are $2,720 and $2,920, with potential targets above $3,000.
Exchange Inflows Surge
ByBit, Crypto.com, and OKX have also seen substantial net asset inflows over the last 24 hours, increasing by $301.4 million, $107.8 million, and $97.7 million, respectively. These inflows indicate growing investor confidence and a strong rebound in trading activities.
Solana’s Record Performance Against Ethereum
The value of one Solana token compared to one Ether token has reached a new all-time high, following a brutal market-wide sell-off earlier this week. This surge highlights Solana’s resilience and growing strength within the crypto market.
Bitcoin’s Path to Recovery
Bitcoin price started a recovery wave above the $55,000 resistance, but it must clear the 100 hourly SMA to continue higher. Currently trading below $58,000, Bitcoin faces resistance near $57,500. Clearing this resistance could see BTC rise to $58,250 and potentially challenge the $60,000 mark. However, failure to clear $58,250 might lead to another decline.
$90,000 Rebound Target for Bitcoin
Crypto trader and analyst Peter Brandt predicts a significant rebound for Bitcoin, foreseeing it soaring to new all-time highs of $90,000. Despite the recent downtrend, which saw Bitcoin crash below $50,000, Brandt’s analysis suggests a potential bullish run, comparing the current market cycle to previous patterns that led to substantial gains.
Conclusion
The recent crypto market recovery underscores the resilience and dynamic nature of digital assets. With significant accumulation by long-term holders, robust inflows into Ethereum ETFs, and a general rebound in crypto prices, the market seems poised for continued growth. As global economic conditions evolve, the crypto market will likely remain a focal point for investors seeking new opportunities.
Stay tuned for more updates as we navigate this exciting and volatile market landscape.