This week’s trading in cryptocurrency markets has largely been sideways, with little change in the prices of Bitcoin and Ethereum. Yesterday’s increase in trading volume and momentum on the cryptocurrency market is not reflected as today notes a lack of notable price movement. The global cryptocurrency market cap is $927 billion, with Bitcoin still trading at around $19,000 and Ethereum at $1,300. Let’s look at the recent news that has had an impact on markets.
Key Notes:
- With little volatility and a comparatively high trading volume, the cryptocurrency market has continued to move sideways this week.
- According to a recent report, over $740 million worth of Bitcoin recently left exchanges. This is a bullish indication that traders may be preparing to hold BTC for an extended period of time.
- Shanghai, the following Ethereum network upgrade, has already launched a testnet and is anticipated to go live in 2023.
- Even though the fear and greed index is still at extreme fear, the low volatility and high trading volume are encouraging signs for the market’s future.
General Crypto Market Update
The most important news of the day was revealed in a report by Cointelegraph, which also featured an intriguing statistic. The largest outflow of Bitcoin since the price drop in June was over $740 million.
Cointelegraph reports: “The amount of Bitcoin flowing out of cryptocurrency exchanges picked up momentum on Oct. 18, hinting at weakening sell-pressure, which could help BTC price avoid a deeper correction below $18,000.”
It’s a bullish sign that a lot of Bitcoin is leaving exchanges, which suggests that traders and holders may be preparing to hold BTC for a while. Users who take their cryptocurrency assets out of exchanges typically intend to store them in cold storage or on hardware wallets.
The reduced market volatility, which gives traders more confidence to open long-term positions, is most likely the motivation behind users moving cryptocurrencies like Bitcoin off exchanges.
Ethereum News Update
Additionally, Ethereum is already getting ready for Shanghai, the next significant upgrade. The next stage of ETH development, including implementing staked Ether withdrawals, can now be tested by developers thanks to the launch of a testnet in Ethereum’s Shanghai, according to a report from Coindesk.
For those who don’t know, it’s still impossible to withdraw staked ETH, but the upcoming update to the network will allow for withdrawals of staked Ethereum assets.
There isn’t a specific date for the upgrade yet; it will probably happen in 2023, so don’t get your hopes up just yet. Ethereum’s Shanghai update will be the first after the network’s merger in September, marking yet another momentous milestone.
Final Thoughts
Today’s Bitcoin fear and greed index, which is currently at 22 points, indicates that market sentiment is still in extreme fear. Although the index is up two points from yesterday, it is still extremely low compared to last month, indicating that the market is still bearish.
The good news is that trade volume has remained largely unchanged after yesterday’s rise, with Ether’s 24-hour volume declining 6% and BTC’s only declining 0.61%.
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