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▲ Cryptocurrency ©
The center of gravity in the virtual asset market is rapidly shifting from Bitcoin (BTC) to altcoins. While the overall market capitalization once exceeded $3 trillion and the uptrend spread to small and medium-sized coins, with Bitcoin Cash (BCH) surging 34% in one day, the Bitcoin market is simultaneously seeing an increase in FOMO (Fear Of Missing Out) overheating and profit-taking risks.
According to investment media FXStreet on September 23 (local time), the total virtual asset market capitalization increased by 1.7% to $2.95 trillion, briefly surpassing $3 trillion during intraday trading. Bitcoin, Ethereum (ETH), and BNB (BNB) each rose less than 0.5%, while Bitcoin Cash surged 34%, Uniswap (UNI) 15%, and The Graph (GRT) 12.8%. In contrast, Tron (TRX) fell 1.4%, and Tezos (XTZ) and Algorand (ALGO) each dropped 0.1%.
Bitcoin traded near $86,200 on Wednesday morning, rising to Monday's intraday high of $87,300, but then encountered selling pressure again. FXPro analyzed that speculative funds are temporarily moving from Bitcoin to altcoins, considering the optimism seen in the altcoin and stock markets. This indicates an expansion of risk appetite as investors who held funds in relatively liquid Bitcoin move to altcoins in search of higher profit opportunities. Bitcoin Cash surged over 30% in 24 hours, and its 7-day increase reached 70%. If the positive market momentum continues, there is a possibility of a rapid recovery to around $450, where buying interest was concentrated from October last year to May this year.
Institutional funds are supporting the market's rise. Inflows into US Bitcoin spot ETFs surged to approximately $1 billion, marking the largest level since early October last year when Bitcoin hit an all-time high of about $126,000. Ethereum spot ETFs also saw the largest inflows since October last year. According to Glassnode, not only ETFs but also direct purchases from virtual asset exchanges are increasing, driving the actual buying trend, but simultaneously, leveraged positions are also rapidly growing. Approximately two-thirds of the current Bitcoin supply is in profit, suggesting an increased risk of profit-taking.
Overheated investor sentiment was cited as a cautionary factor. According to Santiment, as Bitcoin approached $87,000, FOMO rose to its highest level since 2024. This strong one-sided optimism could increase the likelihood of a short-term trend reversal. The market is showing a typical cyclical uptrend with risk appetite spreading to altcoins, but the expansion of leverage and the potential for Bitcoin holders to take profits also need to be closely watched.
Meanwhile, US Treasury Secretary Scott Bessent evaluated dollar-pegged stablecoins as one of the means to support the global role of the dollar. He explained that the dollar is used in 89.2% of foreign exchange market transactions, and the majority of stablecoins are also pegged to the US dollar. In the virtual asset market, institutional fund inflows through ETFs and altcoin rotation are providing upward momentum, while selling pressure around $87,000 for Bitcoin and overheated investor sentiment have emerged as variables that will determine the short-term trend.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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