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Increasing activity by investors with a simultaneous increase in the hash rate and falling exchange reserves paint a bullish overall picture on the crypto market. Is the trend reversal imminent?
The weekend brought momentum to the crypto market. On Sunday, total market capitalization reached US $ 1.7 trillion for the first time since mid-June, and the BTC price also flexed its muscles above the US $ 42,000 mark, which has not been reached since May. At the start of the week, profit-taking allows the crypto reserve currency to correct just below 40,000 US dollars, but in the 7-day trend, the crypto flagship is still clearly in the plus at twelve percent.
A similar picture emerges with altcoins. After widespread price jumps, the ten largest crypto assets in terms of market capitalization cede partial profits again. Except for ETH. The second largest cryptocurrency is ahead of the previous day’s level with a 1.3 percent price increase and is thus steadfastly above the 2,500 mark. Dogecoin, on the other hand, posted the largest minus of the top ten crypto assets in a daily comparison with a five percent discount. With Binance Coin (BNB), Cardano (ADA) and XRP, the losses are between 1.4 and 2.4 four percent. Polkadot (DOT) is at least 0.5 percent higher. The weekly balance for the DOT rate thus rises to almost 30 percent increase in value.
The mini-rally this weekend also had an impact on the market sentiment, which has been clouded over for several weeks. For the first time since May the pointer was at Crypto Fear and Greed Index back to “greed”. The bull mood lasted for two days. At the beginning of the week, the mood slips back into the neutral range. Gradually, however, the mood in the crypto market seems to be changing.
Glassnode: Active entities are increasing
The increase in active BTC addresses shows that the summer slump is slowly filling up. As Glassnode writes, “BTC has seen another surge in active entities in the past week”. Active entities are defined as those that either issue or receive transactions. According to the on-chain analysts, the number of daily active entities has “increased by 30 percent from 250,000 to 325,000”.