5 min readBitcoin continues to trade around 102k after rejecting a key resistance level earlier in the week, although crucially, it is holding above the 100k psychological level and the 50-week SMA, the final support of the bull market.
While Bitcoin hovers around 102k, Ethereum has also struggled to push above 3500. However, there are pockets of optimism around Ripple, a notable outperformer, which has traded higher over the past 24 hours. The broader cryptocurrency market capitalization is down 2.3% over the past 24 hours, trading at $3.45 trillion.
The cryptocurrency market has once again been left out of the recent rally, which saw the Dow Jones reach record highs and Gold surge 5% so far this week.
The US government has reopened, ending the longest shutdown in history. However, it’s not clear when data releases will begin. While the September non-farm payroll report could be released soon, other data may take a while to come through. In this scenario, the Fed may not have fresh data in time for the December FOMC, and it may opt to leave rates on hold until there is more clarity.
Whales & LTHs sell, pressurizing BTC
On-chain data showed the infamous Santoshi-era whale Owen Gunden moved 2401 BTC, worth $245 million, to Kraken, potentially signaling a sell. The trader has accelerated his selloff since October, reducing his BTC holdings from 11,000 BTC (about $1.4 billion) to 5,350 BTC (about $560 million).
At the same time, Long Term Holders (LTGs) have offloaded 414000 (around $43000) on a monthly average. Institutional and treasury demand absorbed this increased supply at the start of H2. However, this demand has also turned negative, compounding BTC headwinds.
Solana ETFs Surge While Network Activity Fades — Can Institutions Spark a Rebound?
While institutions have been selling out of Bitcoin and Ethereum, they have been buying SOL ETFs every day for the past two weeks. Will this be enough to help lift SOL’s price?
SOL trades at $155, about half its January 2025 high of $294. The price has seen increased volatility and has fallen 20% over the last month. Active addresses fell, and there was little news to drive the market until the ETF announcement.
The number of active addresses on Solana has declined to 3.3 million, marking a 12-month low and a significant drop from 9 million in January. Active addresses surged throughout 2024 as Solana established itself as the dominant chain for memecoin launches and trading, thanks to faster speeds and lower costs compared to Ethereum. However, the decline this year has been gradual as memecoin enthusiasm has faded. Falling active addresses could limit SOL upside.
However, on a more positive note, demand for SOL ETF has been strong, raising hopes that the $350.47 million in cumulative net inflows in less than two weeks could help lift the SOL price. BTC ETF demand helped to drive the price to a record high. So far, institutions have been net buyers every day since launch on October 28. Persistent SOL ETF demand could help support the price higher.
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