The cryptocurrency market saw a 1% increase in the past 24 hours, reaching a total value of $2.28 trillion. Despite cooling off from local highs above $2.30 trillion, which were the highest in over two weeks, sentiment among traders rose sharply to a level of ‘greed’, hitting 65, the highest since late July.
Bitcoin’s price briefly surpassed $66.5K on Tuesday, matching the high from July 30th. This slight break above the previous high signals an attempt to consolidate above the resistance of the descending channel. The continued optimism in US equity markets is a key driver behind this movement. Unless there is a sudden wave of profit-taking, Bitcoin could consolidate its breakout from the multi-month downtrend. The initial target for this new bull rally seems to be around the historical highs of $74K, with a more distant target of $80K by the end of the year.
Recent data from CoinShares shows that global crypto fund investments increased by $407 million last week, following outflows of $147 million the week before. While Bitcoin investments rose by $419 million, Solana investments saw a slight increase of $0.6 million, and Ethereum investments decreased by $10 million.
Experts attribute BTC’s growth to expectations of new stimulus measures in China. Chinese Finance Minister Lan Fo’an recently announced that the country will soon introduce additional fiscal measures to support economic development, which has contributed to the positive sentiment in the crypto market.
Interestingly, Google searches for Bitcoin have reached an annual low, indicating a shift in user interest. Searches for altcoins show a similar trend, while interest in meme coins remains relatively stable. Despite the failure of some new coins and the disappointment of certain traders, the meme coin segment is showing signs of recovery.
In other news, the UAE Central Bank has approved the launch of a dirham-based stablecoin called the AED stablecoin. This development positions the AED stablecoin as a frontrunner in becoming the first issuer of a regulated stablecoin in the market.
Overall, the cryptocurrency market is experiencing dynamic shifts in sentiment and investment patterns, driven by a combination of factors such as market speculation, macroeconomic conditions, and regulatory developments. Investors and traders should stay informed and exercise caution when navigating the volatile crypto landscape.
