The cryptocurrency market saw a positive surge on Sunday, with leading cryptocurrencies like Bitcoin and Ethereum gaining ground as oil prices tumbled. This unexpected boost came after Israel launched an airstrike against Iran, strategically avoiding key oil infrastructure.
Bitcoin, the leading cryptocurrency, rallied above $68,000 late Sunday evening before retracing back towards $67,800. Meanwhile, Ethereum, the second-largest cryptocurrency by market capitalization, also reversed its previous week’s losses, briefly hitting $2,520 before settling back around $2,490. This minor correction was attributed to profit-taking by some investors.
The impact of the Israeli airstrike on oil prices was significant, with the U.S. West Texas Intermediate (WTI) benchmark falling by 4.6% to $68.48 per barrel. The targeted strike, which focused on military facilities, avoided damaging Iran’s oil production infrastructure, thus preventing a potential supply disruption and subsequent price hike. This unexpected outcome contributed to the positive sentiment in the cryptocurrency market.
While the overall market saw gains, there was also a notable $70 million in cryptocurrency liquidations over the past 24 hours. Of this, $45 million was attributed to downside bets that were wiped out. Interestingly, Bitcoin’s Open Interest, which reflects the total value of outstanding derivatives contracts, surged by 3.08% in the same period. This surge suggests an influx of new money entering the derivatives market, indicating investor confidence and potential for further growth.
The Cryptocurrency Fear & Greed Index, which gauges market sentiment, remains in the “Greed” zone, signaling an optimistic outlook and potential for further upward movement.
Top Gainers:
Several other cryptocurrencies saw significant gains in the past 24 hours. Notably, Raydium (RAY) surged by 14.17% to $3.48, followed by MANTRA (OM) with a 13.62% increase to $1.44. Popcat (POPCAT) also saw a noteworthy 8.82% rise to $1.55.
The global cryptocurrency market capitalization stood at $2.3 trillion, reflecting a 0.61% increase over the previous 24 hours.
Looking ahead, investor sentiment is cautiously optimistic. Stock futures edged higher overnight, with the Dow Jones Industrial Average Futures gaining 0.46%, S&P 500 Futures gaining 0.54%, and Nasdaq 100 Futures rising by 0.66%.
This week, investors will be closely watching the third-quarter earnings reports from tech giants like Apple Inc. (AAPL) and Microsoft Corp. (MSFT). Additionally, key macroeconomic data, including the September jobs report and the personal expenditures report, will be closely analyzed.
Analyst Insights:
Renowned cryptocurrency analyst Michaël van de Poppe described Bitcoin’s current consolidation phase as the longest since 2016 and 2020. He predicts that Bitcoin will break out within the next two weeks, potentially reaching $90,000-$100,000 around New Year’s Eve.
Van de Poppe also believes this current cycle is more complex and different than previous cycles and anticipates it to extend beyond the usual four-year cycles, influenced by factors like liquidity and interest rates.
Meanwhile, widely followed cryptocurrency analyst Rekt Capital observed that Bitcoin narrowly missed securing a “bullish” weekly close above $67,900. This near-miss leaves investors curious about Bitcoin’s trajectory as markets open for a new trading week.
As the cryptocurrency market continues its journey, investors are closely watching for signals and insights from prominent analysts, while also keeping a close eye on macroeconomic developments and key data releases.
