TL;DR

• BTC is down & ETH is down

• BTC over-performed ETH this week 

• Bitcoin dominance is up

• The hot coin we look at this week is $OM

Latest & Greatest 📰

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BTC & ETH Market Update 📈

Crypto is up this week, with BTC being down 5.3% and ETH down 10.2%:

Bitcoin dominance has increased over the week, rising from 53.9% to a low of 53.56% and ending at 54.6%. Investor sentiment, regulatory changes, technological advancements, and the overall growth of the cryptocurrency sector shape Bitcoin's market dominance. Its reputation as "digital gold" also enhances its position, making it a key player in the market.

It’s going to be interesting to see whether this trend will continue in the short term, as capital in crypto tends to flow initially to BTC and then further out on the risk-curve, starting with altcoins like ETH and then into mid- or low-cap coins.

Bitcoin has regained the $62,000 level, rising 2.4% after retesting the $59,900 support on October 3.

This surge is driven by macroeconomic factors, including robust US employment data, Japan's potential economic stimulus, and heightened concerns over the US financial system.

Despite a historically inverse relationship between Bitcoin and the US Dollar Index (DXY), both assets are rising due to the "Milkshake Theory," which suggests that the US dollar is absorbing global liquidity.

Traders are expecting heightened volatility for Ethereum (ETH) as the U.S. presidential election approaches, with analysts predicting significant price swings between October 25 and November 8.

Derive founder Nick Forster notes that traders anticipate more extreme movements for ETH compared to Bitcoin (BTC), largely due to Ethereum's exposure to potential regulatory scrutiny tied to its role in decentralized finance (DeFi).

Ethereum (ETHUSD) Analysis:

Ethereum (ETH) is in a medium to long-term downtrend, trading between support at 2,180 and resistance at 2,678. A recent breakdown below 2,887 signals further declines toward 2,116. Despite support at 2,200 and resistance at 2,900, inconsistent volume patterns confirm the ongoing bearish momentum.

Bitcoin (BTCUSD) Analysis:

Bitcoin closed at $60,968 on October 4, 2024, showing short-term weakness after breaking its rising trend, with support at $53,778 and resistance at $66,434. Medium-term, it remains slightly negative but could reverse as RSI indicates upward momentum. Long-term, Bitcoin remains in a rising trend, signaling optimism, though $70,000 resistance poses a challenge. The overall outlook is neutral with a "hold" recommendation.

Expected Trading Ranges:

• Ethereum (ETH): resistance level at $2,678 and support at $2,180.

• Bitcoin (BTC): resistance level at $66,434 and support at $53,778.

Market Outlook:

Bitcoin's outlook is bearish short-term after breaking below $61,400, while medium-term sentiment remains weak negative. Long-term remains neutral to positive if it can surpass $70,000. Caution is advised due to market volatility.
Ethereum (ETH) has a bearish outlook, trading in a falling trend channel with resistance at 2,678 and support at 2,180. A recent breakdown suggests potential declines to 2,116, with upcoming volatility from the U.S. presidential election on November 5 likely to exacerbate price swings.

BTC/ETH ratio has seen an increase:

From September 30 to October 5, 2024, the BTC to ETH conversion rate increased from 24.41 ETH per 1 BTC to 25.79 ETH, marking a rise of approximately 5.65%. This reflects a positive trend in Bitcoin's value relative to Ethereum, indicating growing strength for Bitcoin over this period.

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Hot Coin: MANTRA 🔥

In this week’s newsletter, we dive into Mantra’s token with the ticker: $OM.

The price action and volume have been growing consistently and don’t seem to stop any time soon:

What is the project about?

MANTRA Chain is an innovative project within the Cosmos ecosystem focused on creating a "chain of regulated digital assets" that ensures compliance with regulatory frameworks for real-world assets (RWA) and tokenized assets.

It embraces the concept of a "permissionless blockchain for permissioned applications," attracting institutional and retail users from traditional financial backgrounds.

Built on the Cosmos SDK and leveraging Tendermint's BFT consensus for enhanced security and scalability, MANTRA Chain provides a flexible development environment for Web3 applications, fostering innovation while adhering to evolving regulatory requirements in the blockchain landscape.

Why is the project exciting now?

There are four main reasons why we feature this project in this week’s newsletter:

• Leveraging Cosmos SDK for Scalability

• High Performance and Security

• Focus on RWA and Permissioned Applications

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