Crypto Market Holds Steady in Bullish Consolidation Phase

Market Overview

The total crypto market capitalization has held steady between $2.58 trillion and $2.68 trillion for nearly two weeks. After staging an impressive rally from August 19 to 22, the market has entered a consolidation phase. This represents a bullish consolidation rather than a simple pause, given that the market completed a significant technical breakout last month. The recent lull primarily serves to ease short-term overbought conditions.

The sentiment index reading of 65, indicating greed, confirms the optimistic mood and signals a fundamental shift in the cryptocurrency market’s trend. However, it remains reasonable to expect that sentiment has not yet reached extreme greed, considering the market remains nearly 40% below its all-time high.

Bitcoin is trading just below $79,000, hovering within a narrow range despite significant weakness in the dollar and growing anxiety across equities and bonds. This pause aligns with resistance encountered in this area back in May, while April 2025 saw support at roughly these same levels. Among notable bullish developments, the impending formation of a golden cross stands out, with the 50-day moving average rising above the 200-day moving average while price trades above this crossover.

News Background

Trading volumes on the largest exchanges are running 70% lower than in October of last year. Activity across the crypto market remains subdued, making it premature to declare the start of a new bull cycle, according to CryptoQuant.

Japanese digital asset treasury company Remixpoint has sold off its entire altcoin portfolio and pivoted to a strategy focused exclusively on accumulating Bitcoin. The company ranks second among Japanese public holders of the leading cryptocurrency, maintaining a balance of 1,506 BTC.

Hyperliquid Strategies, a digital asset treasury firm accumulating HYPE tokens in its reserves, plans to expand its share issuance programme from $1 billion to $2.5 billion. The increased programme size will provide the company with greater funding capacity for its HYPE-focused treasury strategy.

Bank of America, Goldman Sachs, Citi, and 18 other major global banks have agreed to establish a joint venture for issuing stablecoins. The launch of the first US dollar-pegged stablecoin is anticipated in the first half of 2027.

The number of Bitcoin holders continues to grow and has already surpassed half a billion people, representing 6% of the world’s total population, according to on-chain analyst Willy Wu. India leads in terms of holder count, followed by the United States and China.

The FxPro Analyst Team

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