Bitcoin closed above $27,000 in the U.S. market, demonstrating resilience despite the ongoing conflict in Gaza. The cryptocurrency experienced a slight decline of 0.73% over the past 24 hours, trading at $27,395. Ether (ETH), on the other hand, saw a drop of 0.96% at $1,546. The Market Index (CMI) also experienced a decrease of 0.9%. The Bitcoin Trend Indicator from Indicies predicts a significant uptrend for Bitcoin, while the Ether Trend Indicator anticipates a significant downtrend.
Equities Market and Geopolitical Events
In the equities markets, the S&P 500 and Nasdaq both rose by over 0.5%, seemingly ignoring the Israel-Hamas conflict for a second day. Mark Newton of Fundstrat sees a buying opportunity, stating that there’s a “good likelihood” the bottom is in for stocks. He expects a short-lived market decline due to geopolitical events, followed by a rebound.
Token Unlocks for Aptos and Ape Coin
Aptos (APT) and Ape Coin (APE) are set to undergo significant token unlocks in the next week. Token unlocks can temporarily depress cryptocurrency prices, but when the liquidity freed represents over 100% of daily volume, prices tend to rebound briefly before falling further within two weeks. Aptos is scheduled to unlock 4.54 million (APT) on Wednesday, worth around $22.2 million based on current market prices. Meanwhile, Ape Coin plans to unlock 15.6 million (APE) worth $15.88 million later this week.
Bitcoin’s Rising Market Cap Dominance
Bitcoin’s grip on the overall cryptocurrency market has been steadily increasing. The Bitcoin market cap dominance metric rose above 51%, its highest reading since July. Joel Kruger, a market strategist at LMAX Group, noted in an email that despite recent global turmoil, Bitcoin has demonstrated exceptional strength, securing its position as the top-performing asset over the past 30 days relative to the US Dollar.
Kruger attributed Bitcoin’s rising dominance to the second-largest crypto asset, Ether, and its stronger correlation with risk sentiment. Additionally, Ether’s increasing token supply after reverting to being inflationary has made Bitcoin more attractive for investors.
Ethereum’s Decline Relative to Bitcoin
This week, Ether dropped to a fresh 15-month low relative to Bitcoin amid slumping blockchain activity on Ethereum and dismal investor interest for newly listed futures-based ETFs in the U.S. K33 Research noted in a Wednesday market report that traders on the derivatives market expect Ether to continue underperforming. K33 analysts suggested that sticking to Bitcoin until there is clear proof of a spark in Ether is likely the safest exposure for the time being.
Conclusion
In conclusion, Bitcoin has shown resilience in the face of geopolitical events and maintains its position as the top-performing asset relative to the US Dollar. With the Bitcoin Trend Indicator predicting a significant uptrend, it’s possible that the cryptocurrency’s value will continue to rise. Meanwhile, Ether faces a potential downtrend and underperformance, making Bitcoin a more attractive investment option for the time being. As the market continues to evolve, investors should keep an eye on these developments and make informed decisions based on the performance of these leading cryptocurrencies.
