This weekend saw a significant surge in Bitcoin’s price, reaching record highs at $124,673.78. Alongside this price activity, Bitcoin’s dominance rate has also experienced an uptick, suggesting a renewed bullish sentiment towards the leading cryptocurrency. However, the headlines were not exclusively about Bitcoin—Japan’s newly appointed prime minister expressed his explicit support for “Abenomics,” indicating a potential shift in economic strategy. This move aligns Japan with the current easing monetary policies of the world’s three largest economies: the U.S., China, and Japan, providing a supportive backdrop for asset prices globally.
On the blockchain front, data from Glassnode indicates that Bitcoin ‘whales’—large holders—are currently slowing down their coin spending. The accumulation activities by mid-sized Bitcoin holders reflect a growing structural demand, despite large holders offloading their assets. This trend could counterbalance fears of an extended bear market, particularly considering the historical context of Bitcoin’s four-year halving cycles.
In the arena of altcoins, developments are also noteworthy. According to Timothy Misir, head of research at BRN, ether treasuries now control a larger share of circulating supply compared to Bitcoin treasuries, suggesting a deliberate rotation of capital within the crypto market. Last week, digital asset products saw unprecedented inflows totaling $5.95 billion, marking the largest weekly inflow on record.
Individual tokens exhibited mixed performance. Tron’s TRX token showed momentum, attempting to breach its 50-day simple moving average, buoyed by activities on the newly debuted SunPerp platform. On the flip side, Lido’s LDO token experienced a decline over the weekend after a brief surge, dropping 3%. Furthermore, VanEck recently registered a statutory trust for an ETF tied to Lido Staked Ethereum, highlighting continued institutional interest.
Investors are also advised to keep an eye on upcoming unlock events for various tokens, which may lead to increased volatility. Significant unlocks are expected for multiple tokens including APT, ATH, LINEA, and others, each exceeding $5 million.
In traditional finance, the Japanese yen weakened against the U.S. dollar, coinciding with Japan’s Nikkei index achieving record highs. The S&P 500 futures displayed a slight increase of 0.12%, despite the ongoing U.S. government shutdown creating uncertainty in the markets.
With the altcoin market settling into a more cautious state, Bitcoin’s dominance has started to rise as traders pivot towards the leading cryptocurrency. The average relative strength index has crept into neutral territory, indicating potential consolidation for altcoins as the focus sharpens on Bitcoin.
One of the standout performances recently has been from ASTER, the token associated with its namesake perpetual exchange, which initially faced wash trading allegations but has since recovered following its listing on Binance. Conversely, XPL, a stablecoin-focused blockchain, rebounded after declining fears related to token sales by its founding team.
On the derivatives side, Bitcoin’s price surge over the weekend was matched by a rise in open interest for perpetual contracts on leading exchanges. Although ether’s open interest remained relatively flat, indicating a downward trend since late August, this week is setting the stage for significant price movements across the market.
As the week progresses, key indicators will be closely monitored, particularly around the influence of Bitcoin and altcoin movements on investor sentiment. This developing scenario presents both risks and opportunities for traders engaging with the expansive digital assets landscape.
