Dogecoin and XRP in the red as Bitcoin stays below $67,000

October 23, 2024 04:37 AM PDT | By Invezz

Dogecoin and XRP in the red as Bitcoin stays below $67,000 — Image source: Invezz

Bitcoin stalls below $67,000

Bitcoin’s Monday rally, which saw prices inch close to $70,000, failed to hold, leading to a 1% dip on Tuesday.

The CoinDesk 20 (CD20), which tracks the largest tokens by market capitalization, fell nearly 2%, reflecting the broader sentiment.

Analysts point to key resistance levels at around $70,000 as a significant hurdle for further gains.

Meanwhile, stablecoin issuances paused, adding pressure to liquidity in the market, which had been supporting Bitcoin’s growth since late September.

Traders believe that a sustained increase in stablecoin volumes could provide the necessary boost for Bitcoin to resume its upward trajectory.

Mid-cap and low-cap cryptocurrencies face mixed fortunes

While major tokens like Bitcoin and Ethereum (ETH) saw limited action, the mid-cap and low-cap segments of the crypto market displayed mixed performance.

Memecoin Bonk (BONK) and governance token APE led the losses, each dropping over 7%.

Despite the downturn, these smaller tokens continue to draw interest due to their volatility.

Market observers note that the declines in these tokens are part of a broader trend as traders consolidate gains and rebalance portfolios ahead of potential market catalysts, including macroeconomic shifts and upcoming regulatory announcements.

Bitcoin ETFs record $80 million net outflows

The US-listed Bitcoin ETFs collectively lost a net $80 million on Tuesday, reflecting a pause in investor appetite.

Ark Invest’s ARKB product registered a $134 million outflow, marking the largest withdrawal on record for the ETF.

On the other hand, BlackRock’s IBIT ETF attracted $42 million in inflows, leading among its peers, while Fidelity’s FBTC and VanEck’s HODL products managed to draw in $8 million and $3 million, respectively.

This divergence in flows indicates varying investor strategies, with some choosing to lock in profits while others see the potential for a renewed upward trend in Bitcoin prices.

Stablecoin volumes and crypto market momentum

Stablecoin liquidity plays a crucial role in driving the overall crypto market’s momentum, as it often serves as a source of quick capital for purchases.

A recent analysis suggests that the slowdown in stablecoin issuances may be curbing Bitcoin’s growth potential.

During the rally from August to September, rising stablecoin volumes helped the crypto market recover from a slump, pushing Bitcoin and other major tokens higher.

With stablecoin volumes remaining flat since late September, the market lacks the same liquidity-driven momentum, adding to the challenges faced by traders looking for a sustained uptrend.

Ether ETF sees $11 million inflow as Bitcoin ETFs struggle

While Bitcoin ETFs faced outflows, BlackRock’s Ether (ETH) ETF reported an $11 million inflow on Tuesday.

This suggests that some investors are diversifying into Ether, possibly anticipating growth in its ecosystem.

In contrast, other major crypto ETFs remained flat, with no significant inflow or outflow activity.

This shift highlights the evolving investment landscape within the crypto market, as institutional investors weigh their options amid fluctuating prices and changing market dynamics.

The divergence in ETF flows underscores the varying strategies being employed by market participants as they navigate the complexities of the current market environment.

The post Dogecoin and XRP in the red as Bitcoin stays below $67,000 appeared first on Invezz

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