Despite the shaky start to the week, cryptocurrency prices have pumped significantly in the past 24 hours. The crypto market has increased its capitalization by 6% over the past day, sparking a bull run for several large-cap coins.
Considering that the outlook at the start of the week was quite bleak, it is essential to explore the market to find out why coin prices are on the rise and whether this can be sustained.
Plunging Dollar Raises Hope for Market Stabilization
One of the biggest trends in the crypto market this year has been the market’s inverse relationship with the dollar and seeming lockstep moves with stocks.
The trend was on full display over the weekend when the US Dollar Index (DXY) reached new highs against several major currencies, including the British Pound, Japanese Yen, and Euro. However, this rally appears to have stalled a bit.
The Dollar index currently trades at $114.05, down by 0.08% in the past 24 hours. While many believe that this is simply a correction that could give way for a more prominent forward push, it appears to have fueled a rally in the crypto market.
Similarly, stocks appear to be experiencing some relief. The S&P 500 index is up by 0.72% in the past 24 hours, while the index’s futures were on an uptrend before the markets opened early on Tuesday.
With the brief stalling of the dollar’s rally, investors appear to be slowly returning to the crypto market.
Hodlers Still Hunkering Down
Although the crypto market was on a downtrend last week, it appears that crypto holders are still convinced hodling their crypto assets.
Glassnode, one of the market’s leading analytics service providers, reported that Bitcoin’s Coin Days Destroyed (CDD) had set new lows. The metric tracks the number of dormant days lost once Bitcoin leaves its host wallet in a given period. When the CDD is high, it indicates that more coins being stored in the long term are on the move.
The total volume of #Bitcoin coin-days destroyed in the last 90-days has, effectively, reached an all-time-low.
This indicates that coins which have been HODLed for several months to years are the most dormant they have ever been.
Live Chart: https://t.co/o2ekiUEiip pic.twitter.com/G64xi7SArJ
— glassnode (@glassnode) September 26, 2022
Glassnode explained that the total of BItcoin CDD in the past 90 days had hit an all-time low. This suggests that coins that have been held for several months or years are still dormant. Investors aren’t bowing to the selling pressure.
Historic September Encourages Investors
Another huge catalyst appears to be the potential for the market to record a green September for the first time ever.
September is known for being a relatively bad month for the crypto market. However, with Bitcoin currently up by 0.7% from the start of the month, the asset could mark the first green September since 2016.
Material Indicators, an on-chain analytics resource, explained that this potential would rest on the bulls’ ability to defend Bitcoin’s price bottom. Investors appear motivated to defend this price, with a month of gains possibly setting the market up for even more growth towards the end of the year.
#BTC now in position for a green Monthly close…if it can hold through Friday.
Taking profits along the way.#NFA pic.twitter.com/KSvM2CJHXq
— Material Indicators (@MI_Algos) September 27, 2022
Another token trending this September is TAMA, the native token for Tamadoge. The new crypto platform introduces a blend of the massive appeal of meme tokens and the play-to-earn crypto game system. TAMA is now listed on one of the biggest cryptocurrency exchanges, OKX.
Investors can claim their TAMA tokens, purchased during one of the best crypto presales, and trade them on OKX.
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