Market wrap: Bitcoin rally set to stop

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Bitcoin traded in a volatile range on Monday, with buyers looking exhausted ahead of the $ 50,000 resistance level. The cryptocurrency was trading at around $ 46,000 at the time of release and has been roughly stable over the past 24 hours.

On Monday, the total crypto market capitalization surpassed $ 2 trillion for the first time since mid-May, according to data from CoinMarketCap. Ether and Cardano stood out in the recent crypto rally, with strong rallies since the start of the year, increasing by 26% and 62% respectively, compared to a 16% increase in bitcoin during the last year. same period. XRP is also up 70% so far this month.

The rapid rise in crypto prices is causing some analysts to expect a pause. Katie Stockton, Managing Director of Fairlead Strategies, pointed out the signs of rising bitcoin exhaustion in her Monday newsletter.

Upward exhaustion signals could support a brief period of consolidation as gains are digested and short-term overbought conditions are relieved, Stockton wrote.

Even if the trend has turned bullish, a pullback is expected before the continuation. Indeed, the volume has declined with an increase in prices, wrote Marcus Sotiriou, a trader at UK digital asset broker GlobalBlock, in an email to CoinDesk.

Latest prices

S&P 500: $ 4,479.7, + 0.26% Gold: $ 1,787.9, + 0.45% The 10-year Treasury yield closed at 1.27%, down from 1.29% on Friday.

Bitcoin’s mining reserves are increasing

Bitcoin miners have added more cryptocurrency to their reserves in recent weeks.

Reserves are now close to this year’s all-time high of May 9, recovering June’s outflows, Jan Wuestenfeld, analyst at blockchain analytics firm CryptoQuant, wrote in a blog post.

Miners “seem unimpressed with the most recent price movements (probably expecting higher prices), Wuestenfeld wrote. The fact that miners are not under pressure to sell their BTC at these prices is a testament to the health and the resilience of miners and the network.

The graph shows bitcoin mining reserves with a BTC price overlay.

Source: CryptoQuant

Ether options

Total open interest on ether options exceeded $ 4 billion last week, peaking in two months, according to Skew, a cryptocurrency derivatives market data provider. The options market is bullish on the ether after a decisive break above $ 3,000 last week.

The asymmetric data also shows a decline in ETH options volume in recent weeks, which has coincided with short-term overbought signals. Options traders have assigned a 64% chance that Ether will stay above $ 3,000 this month, which is close to technical support.

The chart shows the total ether options open across the exchanges.

Source: bias

Digital asset fund outflows

Investors bought back $ 22.1 million net from cryptocurrency funds last week, the sixth straight week of exits, even as bitcoin and many other digital assets rallied, according to a new report.

This is the longest streak of capital outflows since January 2018, according to the report released Monday by digital asset manager CoinShares.

Investors saw a $ 22 million exit from bitcoin, even though the largest cryptocurrency recently traded at $ 48,200, down from $ 29,608 last month.

Weekly net flows to crypto funds. (CoinShares)

Source: CoinShares

Coinbase trading volume

Last week Internet Computer (ICP) volume on Coinbase increased significantly as the price rose 50%, according to a report from the crypto exchange. The volume of Dogecoin (DOGE) on Coinbase also increased as the price increased as retail investors reengaged. The volume of FARM, the Harvest Finance auto-yield farming protocol token, increased by 70%.

Source: Coinbase

Meanwhile, ETH volume on Coinbase continues to exceed BTC, with August 7 being the most extreme as the ratio of ETH and BTC volumes was 67:33.

ETH (dark purple) volumes continued to outperform Bitcoin (light gray).

Source: Coinbase

Altcoin balance sheet

Solana and Terra hit all-time highs: Prices for Solanas SOL and Terras LUNA tokens hit all-time highs on Monday, as the cryptocurrency’s total market cap surpassed $ 2 trillion for the first time since May , CoinDesks Muyao Shen reports. The rise in token prices representing two projects designed for the decentralized finance (DeFi) sector, shows that investors remain confident in the sector, especially in layer 1 protocols, despite the security risks exposed by the largest DeFi hack never recorded in monetary value. Figment Raises $ 50 Million to Build Proof of Stake Infrastructure: Blockchain infrastructure provider Figment raised $ 50 million in Series B funding round led by institutional investors Senator Investment Group and Liberty City Ventures. Anchorage Digital, Galaxy Digital and 10T Ventures also participated in the funding, Figment said on Monday. The company plans to use the funding to expand its infrastructure across the Proof of Stake (PoS) industry supporting the services it provides “top to bottom web stack 3. The amount of Huobi Tokens that Huobi Global burned in July indicates that crypto exchange revenues likely fell last month. The total value of HT burned fell 54% from June to $ 22.3 million, the exchange said. combustion correlates with income, and therefore a decrease in tokens burned indicates a decrease in income. theoretically increase their value.Watford FC Sports Dogecoin Logo: Watford FC players sported the dogecoin logo on their sleeves the football team returned to the English Premier League on Saturday.The crypto logo inspired The Shibu Inu meme appeared on Watford’s shirts as part of the club’s sponsorship deal with crypto-betting platform Stake.com. The deal is worth around $ 700,000 ($ 970,000), according to a report from The Athletic on Saturday.

Relevant news:

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Notable 9:00 p.m. UTC (4:00 p.m. ET) winners:

classic ethereum (ETC) -4.78%

bitcoin cash (BCH) -1.37%

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