Bitcoin Demand Holds Steady, But Will It Rise?

DAILY MARKET OVERVIEW
Bitcoin’s Demand Holds Steady

👋 Hey, Crypto Enthusiasts! In today’s overview, Bitcoin demand stabilizes, lawmakers push for reserves and dips present buying opportunities. Let’s dive in!

Today Bitcoin is hovering around $60,500, but blockchain analytics platform CryptoQuant reports that demand growth needs to ramp up for a potential Q4 rally.

• While September saw steady demand, it’s well below the levels from earlier this year when Bitcoin hit $70,000. Without stronger demand, the price may struggle to gain significant momentum.
  

• ETF activity brought some optimism, as institutional buying increased, with up to 7,000 BTC purchased daily in September. However, recent outflows from major ETFs, except BlackRock’s, suggest that momentum may be cooling, impacting short-term price action.

This comes when Bitcoin’s demand patterns are mimicking past halving cycles, which previously triggered price surges. If this trend repeats, Q4 could see demand rise again, tightening supply and potentially pushing prices upward.

🇺🇸 US Lawmakers Push for Bitcoin Reserve

At the same time, U.S. lawmakers are supporting a plan to create a national Bitcoin reserve.

• Senator Cynthia Lummis is leading the effort for the government to buy one million BTC. This idea is getting more support, including from former President Trump and Robert F. Kennedy Jr., who are pushing for even larger Bitcoin purchases.

The goal? To make the U.S. the world’s leading Bitcoin holder. Some are even calling for the Federal Reserve to hold Bitcoin as part of its reserves, which could have major implications for the market.

🏦 Standard Chartered: Bitcoin Dip Below $60,000 Is a Buy Signal

Despite the possibility of Bitcoin dipping below $60,000, multinational bank Standard Chartered advises viewing it as a buying opportunity. 

They argue Bitcoin serves as a hedge against financial system risks rather than geopolitical tensions. Increased options market activity points to a potential price recovery, with support likely around $60,000.

As institutional demand shifts and political momentum grows, Bitcoin's market activity could see notable increase in the coming weeks.

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Long-Term Ethereum Holders Selling? 🤔 

Ethereum's recent signs of recovery were short-lived as heavy selling pressure hit the market.

A previously dormant Ethereum ICO investor, inactive for over two years, suddenly deposited 12,010 ETH (worth $31.6M) to Kraken within just four days.

• This individual had originally acquired 150,000 ETH during Ethereum's Genesis for a mere $46.5K, which is now valued at $394.5M.

Shortly after, the same investor sold another 19,000 ETH ($47.54M), adding to the pressure. These moves hint at possible liquidation, raising concerns about how much more could hit the market.

At the same time, Grayscale added to the selling fears by transferring 25,000 ETH to Coinbase. With a total holding of 2.092 million ETH ($5.07B), further sales from Grayscale could weigh heavily on Ethereum’s price.

While Ethereum's long-term prospects remain strong, the market now faces short-term challenges as large amounts of ETH from early investors and institutions enter circulation.

NEWS OVERVIEW
The Latest Crypto Headlines 📰 

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SEC Appeals Ripple Ruling, Citing Supreme Court Precedent
The SEC is appealing the recent Ripple ruling, arguing that the court’s decision conflicts with decades of Supreme Court precedent and securities law.

Aerodrome Surpasses $1 Billion in Deposits, Leads DeFi on Base
Aerodrome Finance has topped $1 billion in deposits, dominating decentralized finance (DeFi) on Coinbase's Layer 2 network, Base.

Metaplanet Boosts Bitcoin Holdings to 530 BTC After Earning $1.4 Million
Japanese firm Metaplanet has expanded its Bitcoin holdings to over 530 BTC after earning $1.4 million through a Bitcoin options strategy.

YOUTUBE INFLUENCER SUMMARY 📷️ 
Josh Olszewicz - Alt Coins: Not Great, Not Terrible (03.10.2024 Summary)

Josh takes a cautious but realistic approach to the state of altcoins. He describes the market as a mixed bag, with some altcoins showing signs of life while many remain stagnant.

• The global liquidity, which impacts the market, has ticked down due to geopolitical issues, particularly in the Middle East. This has led to a stronger dollar, which isn't favorable for altcoins, as they tend to perform inversely to the dollar's strength.
  

• Josh highlights that it's not yet an "alt season" as dominance charts show Bitcoin still leading the market. He warns against allocating heavily into altcoins right now, noting that charts like Total 2 and Total 3 (measuring altcoin performance against Bitcoin) suggest they haven't bottomed yet.

He specifically points out that Ethereum, one of the major altcoins, is looking weak and could still make new lows.

Although some altcoins like Solana and FTM are holding up, the overall sentiment remains cautious. Josh mentions that most altcoins, particularly meme coins and speculative projects, are not showing significant bullish signals. He also advises against shorting assets like Ethereum or the dollar, as they've already experienced major declines, making further downside unlikely in the short term.

Ivan On Tech - DUMPING CONTINUES! (03.10.2024 Summary)

Ivan discusses the recent dip in the cryptocurrency market, focusing on Bitcoin. Despite the drop, he remains optimistic, seeing this phase as "base-building" that will lead to a major breakout toward the end of the year and into 2025.

• Ivan acknowledges the market's decline, with Bitcoin, Ethereum, and Solana all down. Still, he reassures viewers that these drops are normal and part of larger market cycles.

• He emphasizes the importance of a long-term perspective, pointing out that despite the dip, Bitcoin is still higher than it was two weeks ago.

Ivan also briefly mentions current regulatory hurdles, such as XRP’s ongoing legal battle with the SEC, but doesn't view these as significant threats to the market's future.

He stresses that short-term price fluctuations are just noise in the broader market cycle. In his view, "the longer the base, the bigger the breakout," encouraging investors to focus on the long term and avoid being swayed by temporary market movements.

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