Crypto Price Analysis 10-6: BITCOIN: BTC, ETHEREUM: ETH, SOLANA: RIPPLE: XRP, NEAR PROTOCOL: NEAR

The cryptocurrency market is correcting after the weekend surge, which saw Bitcoin (BTC) rally to a new all-time high. The flagship cryptocurrency crossed $125,000 and set a new all-time high of $125,559 before correcting and moving to its current level. BTC is down nearly 1% over the past 24 hours, trading around $123,949. Meanwhile, Ethereum (ETH) briefly crossed $4,600 on Sunday as markets surged before correcting and moving to its current level of $4,567, a marginally lower position over the past 24 hours. 

Ripple (XRP) crossed $3 over the weekend, reaching an intraday high of $3.06 on Sunday before moving to its current level. Dogecoin (DOGE) followed a similar trajectory but is down over 2%, trading around $0.257. Meanwhile, Solana (SOL) is down over 1% after reaching an intraday high of $236 on Sunday. Cardano (ADA) is down over 3%, while Chainlink (LINK) is down almost 3%. Stellar (XLM), Hedera (HBAR), Litecoin (LTC), Toncoin (TON), and Polkadot (DOT) have also registered notable declines. 

Spot Bitcoin ETFs Register Second-Highest Weekly Inflows 

U.S.-listed Bitcoin ETFs registered $3.2 billion in inflows last week, the second-largest weekly inflows since their launch in January 2024. The jump was due to renewed investor interest as prices reached record highs. According to data from SoSoValue, only the week ending November 22, 2024, registered higher inflows. The recovery reversed the previous week’s $902 million in outflows. As expected, BlackRock’s iShares Bitcoin Trust (IBIT) dominated the inflows with $1.8 billion, followed by Fidelity’s FBTC with $692 million. 

Trading activity heavily favored IBIT, which saw billions worth of shares exchanged daily. Analysts note that IBIT has become the preferred vehicle for institutional participation. The US government shutdown has seen investors pivot heavily towards perceived safe-haven assets like Bitcoin (BTC) and gold, both of which soared to new highs. Analysts have attributed the return of positive sentiment to growing expectations of a rate cut, which has improved sentiment towards risk assets. Iliya Kalchev, analyst at Nexo, stated, 

“Growing expectations of another US interest rate cut triggered a “shift in sentiment,” attracting renewed investor demand for Bitcoin ETFs. At current run-rates, Q4 flows could retire over 100,000 BTC from circulation — more than double new issuance. ETF absorption is accelerating while long-term holder distribution eases, helping BTC build a stronger base,” near key technical support levels.”

Stablecoin Market Cap Could Power Crypto Rally 

The record $300 billion stablecoin market capitalization could indicate that more investor capital is flowing on-chain, acting as fuel for the ongoing market rally. Stablecoin supply reached a record $300 billion on Friday, a 46% year-to-date growth that may outpace the previous year’s growth. The record comes as October, historically a bullish month for BTC and other cryptocurrencies, started on a positive note. Andrei Grachev, founding partner at Falcon Finance, stated, 

“Transfer volumes are in the trillions each month. Velocity metrics show constant activity across networks. Stablecoins are settling trades, funding positions, and giving users dollar access where banks fall short.”

The $300 billion supply could indicate a rebound in digital assets, along with growing integration of stablecoins in traditional finance. Ricardo Santos, chief technical officer at Mansa Finance, stated, 

“The stablecoin supply's expansion is often interpreted as a sign of fresh dollar-equivalent liquidity that can quickly rotate into Bitcoin, Ethereum, or altcoins. In this sense, the $300 billion threshold looks like rocket fuel for the next market cycle.”

Morgan Stanley Recommends ‘Conservative’ Crypto Allocation 

Morgan Stanley has issued new guidelines for crypto allocations in multi-asset portfolios, recommending a conservative approach in a report to investment advisors. Morgan Stanley analysts recommended a 4% allocation for cryptocurrencies in “Opportunistic Growth” portfolios, and a 2% allocation for “Balanced Growth” portfolios. However, they recommended a 0% allocation for portfolios focused on wealth preservation and income. The analysts stated in the report, 

“While the emerging asset class has experienced outsized total returns and declining volatility over recent years, cryptocurrency could experience more elevated volatility and higher correlations with other asset classes in periods of macro and market stress.”

Hunter Horsley, CEO of Bitwise, called the report “huge news,” adding, 

“GIC guides 16,000 advisors managing $2 trillion in savings and wealth for clients. We're entering the mainstream era.”

GENIUS Act Could End Banking Rip-Off 

Tushar Jain, co-founder of Multicoin Capital, believes the GENIUS Act will trigger an exodus of deposits from traditional bank accounts into higher-yield stablecoins, ending the ability of banks to rip off retail depositors. Jain stated, 

“The GENIUS Bill is the beginning of the end for banks’ ability to rip off their retail depositors with minimal interest. Post Genius Bill, I expect the big tech giants with mega distribution (Meta, Google, Apple, etc) to start competing with banks for retail deposits.”

Jain argued that tech giants will begin competing with banks for retail deposits, and offer better stablecoin yields, a better user experience, along with instant settlement and 24/7 payments. 

Bitcoin (BTC) Price Analysis 

Bitcoin (BTC) surged to a new all-time high on Sunday thanks to a weekend rally that took it past $125,000 to $125,559. Bullish sentiment around the flagship cryptocurrency intensified over the weekend after spot Bitcoin ETFs registered their second-best week on record, and exchange Bitcoin reserves fell to a six-year low, indicating investors were preparing to hold their assets for the long-term, often interpreted as a bullish sign. The flagship cryptocurrency crossed $120,000 on Friday and registered a marginal increase on Saturday, settling at $122,458. BTC surged to a new all-time high on Sunday, reaching $125,559 before settling at $123,520. Buyers have retained control during the ongoing session, with the price marginally up. 

BTC began a retracement after hitting its new all-time high, experiencing fresh volatility. However, it has maintained its position above $123,000 after a weekend rally that was fueled partly by an unusual spike in weekend trading. One analyst warned that the entire move to the upside could be “bait” for longs. The analyst stated in a post on X, 

“Passive shorts compounding here. Shorts opening here on the consensus that the weekend pump is bait.”

CoinGlass data showed liquidity on exchange order books being taken on either side of the price. However, traders generally view weekend moves as unreliable indicators of where the price will head next, due to a lack of liquidity. Regarding where the retracement could bottom, trader CryptoNuevo stated, 

“For the week ahead, I think we could see a 4h50EMA retest - it’s overextended, and you can see the retests in previous similar Price Action. After that, we should see a new move up higher. Therefore, I'm still favoring longs over shorts from the 4h50EMA.”

Popular analyst Rekt Capital argued that BTC could take time to definitively break $124,000.

“There should be no surprise that Bitcoin has been rejected from ~$124k on the first time of asking in this uptrend. After all, the last time Bitcoin was rejected from $124k, the rejection preceded a -13% pullback. Bitcoin needs to prove that this $124k resistance is a weakening point of rejection. And any shallower dip or pullback from here would do just that.”

Some analysts highlighted growing institutional interest, adding that the absence of sharp price pullbacks indicated sizable demand. Caleb Franzen, creator of Cubix Analytics, stated, 

“When I see short-term price action like this, with minimal pullbacks and large spikes to the upside followed by sustained bids, I see institutions.”

BTC started the previous weekend with a marginal drop on Saturday before rising over 2% on Sunday and settling at $112,197. Buyers retained control on Monday as the price rose almost 2% to cross $114,000 and settle at $114,365. Despite the positive sentiment, BTC fell to a low of $112,695 on Tuesday. However, it recovered from this level to settle at $114,067, ultimately registering a marginal decline. Bullish sentiment returned on Wednesday as BTC rallied, rising over 4% to cross $118,000 and settle at $118,659. Buyers retained control on Thursday as the price rose 1.65% to reclaim $120,000 and settle at $120,621.

Source: TradingView

Bullish sentiment persisted on Friday despite volatility and selling pressure. As a result, BTC reached an intraday high of $123,996 before settling at $122,318. Buyers retained control on Saturday as the price registered a marginal increase and settled at $122,458. Bullish sentiment intensified on Saturday as BTC rallied, surging past $125,000 to a new all-time high of $125,559. However, it could not stay at this level and ultimately settled at $123,520. BTC is marginally up during the ongoing session, trading around $123,887.

Ethereum (ETH) Price Analysis

Ethereum (ETH) registered a sharp pullback after briefly crossing the $4,600 mark on Sunday, reaching an intraday high of $4,616 before settling at $4,515. Short-term traders have their eye on key resistance levels, while long-term traders are focused on the broader prediction for 2025. With key network upgrades, rising institutional interest, stablecoin activity, and DeFi use cases, ETH’s next move could play a key role in defining its position in the next bull cycle.

ETH maintained its position above $4,300, starting a fresh increase and climbing above $4,500 and $4,600. However, selling pressure at upper levels led to bulls losing momentum, with the price dropping to current levels. If ETH can decisively claim the $4,600 level, it could move to $4,650. A clear move past this level could send the price past $4,700. On the other hand, a fresh decline could see ETH slip below $4,500. However, if selling pressure persists and ETH slips below $4,300, then the price could drop to $4,000.

ETH’s brief push above $4,600 sparked speculations of a move to $4,700 or higher. However, bearish sentiment prevailed at upper levels, as investors became cautious after signs of slowing momentum and near-term caution.

ETH started the previous weekend in the red, registering a marginal decline on Saturday. Price action turned bullish on Sunday as ETH rose over 3% and settled at $4,144. Buyers retained control on Monday as the price rose nearly 2% and settled at $4,217. Despite the positive sentiment, ETH was back in the red on Tuesday, dropping almost 2% to $4,145. Bullish sentiment returned on Wednesday as the price rose 4.92% to cross $4,300 and settle at $4,349.

Source: TradingView

Buyers retained control on Thursday as ETH rose over 3% to $4,486. The price faced volatility on Friday as buyers and sellers struggled to establish control. Buyers ultimately gained the upper hand as ETH rose $0.56% to reclaim $4,500 and settle at $4,512. Price action was mixed over the weekend as the price fell 0.54% on Saturday. It reached an intraday high of $4,616 on Sunday as bullish sentiment intensified. However, it could not stay at this level and settled at $4,515, ultimately rising 0.62%. ETH is up over 1% during the ongoing session, trading around $4,571. 

Solana (SOL) Price Analysis 

Solana (SOL) surged to an intraday high of $237 on Sunday as the cryptocurrency market rallied. However, it could not push higher and lost momentum after reaching this level, ultimately settling at $228. SOL traded in bullish territory last week but lost momentum on Friday as selling pressure returned. As a result, it fell by over 2% to $227 on Saturday before rebounding on Sunday. SOL is up over 2% during the ongoing session, trading around $233. 

Meanwhile, Matt Hougan, Chief Investment Officer at Bitwise, believes Solana will be Wall Street's network of choice for stablecoins and real-world asset tokenization. Hougan argued that the network’s speed and finality make it a better option despite Ethereum’s dominance. 

“I think Solana is the new Wall Street. They can see what is happening in the stablecoin and tokenization space, and they know that it is going to be enormously significant. Really important people are saying that stablecoins will reinvent payments and tokenization will reinvent stock, bond, commodity, and real estate markets.”

Hougan also highlighted network and settlement speed improvements as key factors that could influence investors on Wall Street. Bitwise has bet big on Solana and offers investors a fund called the Bitwise Physical Solana ETP, giving investors exposure to SOL through a fully-backed, physically held structure. Bitwise also has a spot Solana ETF waiting for SEC approval. The final decision on the ETF is due on October 16. 

SOL started the previous weekend in the red, registering a drop of almost 1%. However, it recovered on Sunday, rising 3.58% to settle at $210. Buyers retained control on Monday despite selling pressure as SOL rose 0.92% to $212. Despite the positive sentiment, SOL lost momentum on Tuesday, dropping over 2% to a low of $204, before settling at $208. Bullish sentiment returned on Wednesday as the price rallied, rising over 6% to reclaim $220 and settle at $222.

Source: TradingView

Buyers retained control on Thursday as SOL rose nearly 6% to cross $230 and settled at $234. However, it lost momentum on Friday, dropping 0.86% to $232. Sellers retained control on Saturday as the price fell by over 2% and settled at $227. SOL reached an intraday high of $237 on Sunday as markets rallied. However, it could not stay at this level and settled at $228, ultimately rising 0.35%. SOL is up almost 2% during the ongoing session, trading around $232.

Ripple (XRP) Price Analysis

Ripple (XRP) started the previous weekend in positive territory, rising nearly 1% to $2.807. Buyers retained control on Sunday as the price rose over 2% to $2.868. Price action remained positive on Monday as XRP rose 0.48%. However, it was back in the red on Tuesday, dropping 1.25% to $2.846. Bullish sentiment returned on Thursday as XRP rallied, rising 3.58% and settling at $$2.948.

Source: TradingView

XRP pushed higher on Friday, rising over 3% to reclaim $3 and settling at $3.040. The price faced volatility on Friday as buyers and sellers struggled to establish control. Sellers ultimately gained the upper hand as XRP registered a marginal increase. Selling pressure returned on Saturday as the price fell by over 2% to $2.969. XRP surged to an intraday high of $3.070 on Sunday as bullish sentiment intensified. However, it could not stay at this level and settled at $2.970. XRP is up almost 1% during the ongoing session, trading around $2.994. Buyers will look to retain control and push the price above $3.

Near Protocol (NEAR) Price Analysis

Near Protocol (NEAR) started the previous week in bearish territory, dropping to a low of $2.68 before settling at $2.77, ultimately dropping 0.94%. Selling pressure intensified on Tuesday as the price fell by over 5% and settled at $2.62. Despite the overwhelming selling pressure, NEAR recovered on Wednesday, rising nearly 8% and settling at $2.82. Buyers retained control on Thursday as the price rose over 5% and settled at $2.97.

Source: TradingView

NEAR continued pushing higher on Friday, rising over 2% to reclaim $3 and settle at $3.03. Despite the positive sentiment, NEAR lost momentum on Saturday, dropping to a low of $2.93 before settling at $2.96. The price surged to an intraday high of $3.17, but lost momentum after reaching this level, ultimately settling at $2.95. NEAR is up almost 2% during the ongoing session, trading at $2.97.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.