During early European trading on Saturday, October 12, the total cryptocurrency market capitalization surged 2% over the past 24 hours to around $2.28 trillion.

The significant rally in cryptocurrencies over the past 24 hours has not resulted in significant liquidations. Additionally, volatility is expected to increase over the weekend after Bitcoin prices fell below $59,000 for the first time in three weeks.

The main forces behind today’s cryptocurrency surge

Whale demand is on the rise again

After several days of losses, U.S. spot Bitcoin ETFs saw net cash inflows of more than $348 million on Friday. BlackRock’s IBIT had the highest cash inflows on Friday, about $140.7 million, followed by Fidelity’s FBTC, about $117 million.

Meanwhile, spot Ethereum ETF issuers recorded net cash inflows of about $2 million on Friday. As a result, the net supply of Bitcoin on cryptocurrency exchanges has decreased by about 10,000 in the past week, while the supply of Ethereum has decreased by about 24,600 in the past 24 hours.

Technical aspects

Bitcoin price has reclaimed key support levels following its recent rally. From a technical perspective, Bitcoin price has formed a fractal pattern similar to the bull breakout in the second half of last year.

A sustained rally above $66,000 would trigger the return of FOMO traders, helping to propel Bitcoin prices to all-time highs.

This situation will affect the entire altcoin industry, leading to a significant rise in cryptocurrencies in the coming months.

After Bitcoin’s price rebounded from below $59,000 to highs above $63,000, fears of further cryptocurrency declines have clearly declined. Bitcoin’s Fear and Greed Index surged from 32%, indicating fear in the market, to 49% today, representing the neutrality of the crowd over the past 24 hours.

Bullish sentiment is gradually picking up in October and Bitcoin price is expected to continue its upward trend in the near future.

Additionally, the general election is due in about three weeks, which historical data shows has fueled bullish sentiment.

Additionally, gold and major stock indices have been leading bullish breakouts recently.

Future Outlook

In the face of the current market turmoil, investors need to remain calm and rational. Although the prices of Bitcoin and other cryptocurrencies may continue to fluctuate in the short term, in the long run, as an emerging investment tool and asset class, the potential and value of cryptocurrencies cannot be ignored.

Investors should pay close attention to market dynamics and understand the impact of factors such as whale selling, policy changes, and technological development on the market. At the same time, they need to develop reasonable investment strategies and risk management plans based on their own risk tolerance and investment goals.

In short, although the current cryptocurrency market is experiencing unprecedented turmoil and challenges, as long as we remain calm, look at market changes rationally, and formulate reasonable investment strategies and risk management plans, we will be able to seize opportunities in the future market and achieve our investment goals.