Cryptocurrency Market Overview 09/26/2023
News block
1. Bernstein: Bitcoin ETF approval by early 2024
Bernstein analysts estimate the current crypto fund management industry at about $45-50 billion and expect it to grow to $500 billion in the next 5 years.
Demand, in their opinion, will come from investment advisors, wealth products and private banking, as well as from the possibility of easy access to bitcoin ETFs on brokerage accounts.
"This will mean an ETF share of 10% of the market capitalization of BTC and ETH, as well as a 5-6% share for liquid crypto hedge funds," they wrote.
Applications for bitcoin ETFs from traditional heavyweights Blackrock and Fidelity have significantly improved the chances of accepting this investment product. Instead of "coming up with another reason for refusal," analysts believe that the SEC will go the "middle way" and satisfy a number of applications.
As a result, Bernstein experts now agree that "the chances of approving a spot bitcoin ETF by the beginning of 2024 have increased significantly."
2. The digital euro will appear at least in 2 years
There are at least two years left before the advent of the digital euro, the president of the European Central Bank said.
"Only later in October will the ECB Governing Council decide whether we can continue piloting the project," Christine Lagarde told lawmakers at the EU Parliament's Economic and Monetary Affairs Committee. "The pilot project will probably take us at least two more years before a final decision is made."
Lagarde said that the digital euro will have to provide privacy without complete anonymity, be user-friendly, free and universal.
ECB board member Fabio Panetta previously stated that a decision will not be made until lawmakers and governments of the bloc's member countries agree on confidentiality measures for CBDC.
3. Vitalik Buterin merges ETH
Data from the Spot On Chain blockchain monitoring platform shows that the founder of the Ethereum blockchain, Vitalik Buterin, is actively selling ETH coins this month. So over the past 10 days, he sent a total of 2,421 ETH coins worth $3.94 million to the exchanges (the average price is $1,627 per coin). The last transaction of 400 ETH was sent to the Coinbase exchange on September 25:
Overview of the crypto market
🔸 The current capitalization of the crypto market is $1.090 trillion
🔸 Trading volume for the last day is $28.608 billion
🔸 BTC dominance 47.1%
🔸 Fear and greed index:
- today 46, yesterday 47 a week ago 47
where 0 is extreme fear (may be a sign that investors are too scared - often it's a good time to buy), and 100 is extreme greed (the market needs correction).
There has been a slight increase in the crypto market over the past day. However, due to the small number of major macroeconomic updates this week, there is little that can shake up the market, except for unplanned events.
Bitcoin: falling trading volumes
The volume of BTC spot trading fell to a 6-year low, as evidenced by the data of the CryptoQuant agency:
But what is behind this significant drop?
The main reason is macroeconomic uncertainty and the expectation of a recession. But this downward trend in spot trading has a second side - it reflects the growing interest in holding BTC coins, rather than trading them.
Instead of fixing a quick profit, more and more people are considering BTC and other cryptocurrencies as long-term investments. They are more interested in keeping their coins, believing in their future value, than selling when the first profit appears.
Chainlink: the best asset of September
Chainlink continues to be one of the best assets in September. The price of the LINK token has increased by 23% in 2 weeks, as stock exchange stocks, after a small surge, began to decline again:
