08 Oktober 2021

Market deep dive: The last quarter of the year has had an impressive start

Daniel Kukan

Daniel Kukan

Senior Trader bei Crypto Finance (Brokerage) AG

Über den Autor

BTC$ dominated the field and moved from 41,500 to 55,000 in just a couple of days. In terms of the bigger picture: the important support levels around $40,000 were left behind to trade at the resistance level of $52,000. The short-term resistance of $50,000 (and, more importantly, of $52,000) were taken rather easily. BTC$ is currently trading in a range of 2,000 points: between $53,000 and $55,000.

In the past, September was the poorest performing month for BTC$ on average. Additionally, on-chain data shows that the number of bitcoins in wallets holding over 100 BTCs hit a year-to-date high of 11.88 million, with accumulation persisting despite price dips.

ETH$ has been limping slightly behind BTC$ during the last few months, and is trading moderately lower at 0.066. The resistance level of 0.069 seems to be a bigger hurdle than expected.

The effects of Ethereum’s London hard fork two months ago continues attracting attention. Issuance has been reduced significantly, and staking in the ETH 2.0 contract has risen in popularity.

All alternative smart contract chains, e.g. Solana (SOL), Cosmos (ATOM), Tezos (XTZ), etc. were performing quite nicely before, but were not able to keep up with the pace of the recent bitcoin move. Solana has taken the industry by storm, and the chain has become the most staked Layer 1 blockchain.

The Mid and Shit Indices managed to outperform bitcoin slightly over the last few days, especially SHIB registered a massive performance of several hundred percent at the beginning of October.

The US has understood the situation after the serious and consequent crackdown of China’s cryptocurrency industry and is attempting to bring further clarity (and, most importantly) regulations to the industry. The White House released a statement saying that Joe Biden will bring together 30 countries to stop the illicit use of cryptocurrencies. The aim is to accelerate the cooperation in combating cybercrime, improving law enforcement collaboration, and engaging on these issues diplomatically.

Happy Friday!