Market
picture
The
total capitalisation of the crypto market rose 4.5% to $1.24 trillion, the
highest since June last year and a colourful end to several days of
consolidation. Bitcoin was the main driver, although BNB, Cardano, Solana and
Litecoin also outperformed the market, rising between 5.5% and 11%.
Bitcoin
continued its storm of highs early on Tuesday, peaking at $30.4K and holding above
$30K after a minor correction. This jump in a thin market marked the end of a
consolidation triangle and a corrective pullback after a March rally. The
target for the first pattern is the $40K area, while the second pattern sets up
a rapid rise towards $35K, which is more realistic in the current market, as it
already looks slightly speculatively overbought.
According
to Glassnode, 53% of Bitcoins have not been involved in transactions for two
years. Around 9.45 million BTC are held in wallets. Approximately 29% of BTC
have been idle for five years, while just under 15% have not moved in over a
decade.
Open
interest in bitcoin options exceeded open interest in bitcoin futures for the
first time, indicating expectations for BTC growth, Glassnode noted.
News
background
Forbes
estimates that crypto billionaires worldwide will lose around $110bn in 2022,
with some losing up to 75% of their wealth. Binance CEO Changpeng Zhao is still
the richest man in the industry with a fortune of $10.5bn, down from $65bn a
year earlier.
Ethereum’s
inflow into the stack declined on the eve of Shapella, Glassnode noted.
Developers have scheduled an upgrade for 12 April.
The
Chivo, a cryptocurrency wallet operated by the Salvadoran government, began
freezing user accounts and requiring verification of the source of funds.
This article was written by FxPro’s Senior Market Analyst Alex
Kuptsikevich.
