Bitcoin (CRYPTO: BTC) traded in negative territory Monday night as the global cryptocurrency market capitalization rose 0.2% to $2.64 trillion.
What Happened: The apex cryptocurrency fell 1.03% to $60,753.06 over 24 hours. For the week, BTC has fallen 3.65%.
Ethereum (CRYPTO: ETH) declined 0.39% to $4,289.06 over 24 hours. Over a seven-day trailing period, it has gained 1.32%.
Dogecoin (CRYPTO: DOGE) was down 2.8% to $0.27. Over the last seven days, it has gained 1.89%.
Rival Shiba Inu rose 5.18% to $0.00007014; the self-described DOGE-killer has shot up 70.04% over a week.
The top gainer over 24 hours was Loopring (LRC), which shot up 61.89% to $1.01. The coin has gained 135.24% since the year began.
Loopring rose 61.44% and 151.89% against BTC and ETH respectively over 24 hours.
The recent spurt is attributed to a possible partnership with GameStop Corporation (NYSE: GME) for a non-fungible marketplace, as per GameStop Due Diligence, a website that tracks the Mainstreet gaming marketplace.
See Also: How To Buy Loopring (LRC)
Why It Matters: Ethereum hit an all-time high of $4,455.74 at end-October and on-chain data analyzed by CryptoQuant indicates that the number of Ethereum withdrawals on centralized exchanges is increasing lately.
“Retail investors are heating up the crypto market,” said Ki Young Ju, CEO of CryptoQuant, an analytics platform.
Retail investors are heating up the crypto market.
Looking at on-chain data, the number of $ETH withdrawals on centralized exchanges is increasing lately.
— Ki Young Ju 주기영 (@ki_young_ju) November 1, 2021
On the Bitcoin side, on-chain analytics firm Glassnode noted that the current levels of profit taking are “mild” — in spite of the fact that the apex cryptocurrency too reached an all-time high of $66,930.39 twelve days ago.
“It appears that current holders are by and large unwilling to move their coins here, and are waiting for higher prices,” wrote Glassnode in a blog.
Using the Spent Output Profit Ratio (SOPR), which is the profitability of spent Bitcoin relative to the realized value on a daily basis and ignoring coins younger in age than one hour by using the Adjusted SOPR (aSOPR) to filter out day trading, Glassnode suggested that a positive aSOPR during consolidation is “constructive.”
Bitcoin Adjusted aSOPR, Courtesy Glassnode
The reasoning given in the blog was that the “market can absorb the sell-side whilst maintaining price support levels.”
However, not all analysis on the current state of the markets is equally bullish. Marcus Sotiriou, sales trader at the United Kingdom-based digital asset broker GlobalBlock, noted that there is “cause for concern” as Open Interest on Bitcoin Futures is nearing an all-time high.
Bitcoin Open Interest: Courtesy Glassnode
Sotiriou termed this as a “bearish signal” as it implies there is more leverage in the system which increases the chance of a liquidation event.
“If Bitcoin is being used as collateral there will be an increased chance of a mass-liquidation event, as the price drops lower in tandem with long trading positions,” Sotiriou wrote in an emailed note.
The analyst also pointed out that the euphoria surrounding meme coins, particularly Shiba Inu, could contribute to a leverage flush in the short term due to a rise in retail traders.
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