Bitcoin, Ethereum and XRP Consolidate as SUI Continues Impressive Run

• Bitcoin is consolidating around the $63,600 level on light profit from holders.
• Ethereum broke the $2,595 support and XRP is moving horizontally around $0.589.
• SUI gave investors a 65% monthly gain after seeing key updates in its ecosystem.

Bitcoin, Ethereum and XRP Updates

Bitcoin traded around $63,600 on Tuesday as prices appear to be consolidating within the key $62,000 and $64,700 levels. On-chain data shows the consolidation could be due to profit-taking by holders and light Bitcoin ETF net inflows of $4.5 million, according to data from Farside Investors.

Ethereum is trading in key rectangular channels and tested the $2,595 support before returning to the $2,630 level. If the support level continues to hold, ETH could rise to test the resistance at $2,817. In addition, Ethereum ETFs saw large net outflows of $79.3 million on Monday – the highest level since July 30.

XRP is consolidating around the $0.589 level at the time of writing, following a similarly weak performance in the crypto market. XRP could see increased bullish momentum if it recovers the psychological level of $0.600.

Market engines

Bitcoin and the overall crypto market remained fairly subdued following the announcement by People’s Bank of China (PBoC) Governor Pan Gongsheng that China will cut its reserve requirement ratio (RRR) by 50 basis points (bps). RRR is a portion of deposits that a commercial bank must keep in reserve instead of lending or investing all of its assets. A reduction in RRR is used to stimulate the economy, meaning investors have access to more loans and banks could make more investments.

While Chinese stocks rose after the announcement, the price of Bitcoin and altcoins showed no response, unlike the rally in the crypto market that followed the decision by the US Federal Reserve (Fed) to cut interest rates by 50 bps. The reaction underscores the growing correlation of Bitcoin and crypto with Fed rates and US stocks.

However, with central banks around the world gradually easing economic policies and a historically positive quarter for crypto, the market may continue its impressive growth in the coming weeks.

According to Coinglass data, Bitcoin and Ethereum gave investors an average return in the fourth quarter of 88.84% and 23.29%.

Bitcoin and Ethereum Quarterly Returns

Additionally, following transparency concerns over BlackRock’s decision to reduce the on-chain withdrawal time for its Bitcoin ETF and not publicly display its on-chain balance, Bloomberg analyst Eric Balchunas said the asset manager aims to avoid spam.

“They will show this (balance) to institutional clients on demand, but not publish to the world because they are already getting a lot of spam (e.g. sanctioned bitcoin, NFT) and this would only cause an explosion of that spam,” Balchunas said .

Meanwhile, crypto-based prediction market Polymarket is seeking $50 million in a new funding round and is considering a token launch.

Chart of the day: SUI

SUI/USDT 4-hour chart

SUI is one of the best performers in the top 100 on a monthly timeframe, up over 65%. The Layer 1 token is up nearly 7% over the past 24 hours, breaking through the resistance of a key rectangle and extending weekly gains to 44%.

Key drivers of SUI’s impressive run include:

• Increasing user activity in its DeFi ecosystem as the total locked-in value approaches the $1 billion mark.
• The release of Mysticeti which supposedly reduces the consensus to 390 milliseconds.
• Opening Grayscale’s SUI Trust to Accredited Investors.