Bitcoin Range-Bound Amidst Bull and Bear Projections, Altcoins Plummet

Bitcoin's stagnant trading in the $60,000 range follows its all-time high of $73,777 last month. Analyst predictions vary widely, with some expecting an upward trend and others forecasting a significant drop. Ethereum's recent price rebound due to positive news has not extended to Bitcoin, which has declined by 1.5% today. Altcoin investors are concerned as the market capitalization of non-top 10 coins has decreased significantly in recent weeks. Bitcoin spot ETFs' sluggish performance and potential net outflow of funds raise concerns about further price declines, while positive news includes Australia's potential approval of a Bitcoin spot ETF this year.

Bitcoin Consolidates in Tight Range Amidst Mixed Market Sentiment

Since reaching an all-time high of $73,777 on November 14, 2021, Bitcoin has exhibited sluggish price action, hovering within a tight range around $60,000. In Korean won, its value has also retracted by approximately 90 million won.

Despite its recent consolidation, Bitcoin has maintained a relatively stable trajectory, never dipping below $59,600 or exceeding $73,000 in the past month. This sideways movement has sparked a spectrum of predictions in the market.

Bullish analysts assert that Bitcoin is nearing the conclusion of its corrective phase and poised for an upward surge. Contrarily, bears argue that the $73,777 peak marked the zenith of the bull run, with only a downward trajectory remaining.

As of October 29, 2022, according to CoinMarketCap, Bitcoin concluded trading at $63,118, representing a decline of 0.54% in the previous 24 hours. On the domestic Upbit exchange, its value stood at 90.53 million won, down 1.06% from the preceding day.

During the weekend, Bitcoin displayed muted price action, while Ethereum experienced a price rebound due to positive news regarding Spot Exchange-Traded Funds (ETFs). However, Bitcoin shed approximately 1% from 7 a.m. on October 29, erasing the positive momentum exhibited by altcoins over the weekend.

Bitcoin's decline has been exacerbated this afternoon, falling close to 1.5% to 89.15 million won in Korean won terms. Nonetheless, unlike previous market downturns, the kimchi premium has remained subdued at 3.5%.

Altcoin Valuations Plummet, Raising Concerns

The consolidation in the top cryptocurrencies has coincided with a significant decline in the market capitalization of altcoins, also known as "Jobcoins." According to Trading View, the market capitalization of altcoins, excluding Bitcoin and Ethereum from the top 10, has dwindled to $264.1 billion, down 28.05% from $367.1 billion at Bitcoin's peak on November 14.

This decline in altcoin valuations is particularly concerning, as Bitcoin's market capitalization has only decreased by 15.07% during the same period. The significant divergence in price action has amplified the apprehensions of altcoin investors.

Bitcoin Spot ETFs and Ethereum ETF Prospects

The release of Bitcoin spot ETFs has had a profound impact on Bitcoin's price trajectory. The cryptocurrency's price action has closely followed ETF inflows and outflows. However, recent data suggests a net outflow of funds from Bitcoin spot ETFs.

As funds previously absorbed by BlackRock and Fidelity ETFs have slowed, Grayscale's GBTC fund has remained the sole contributor to ongoing outflows. This trend raises concerns that further outflows could exacerbate Bitcoin's price decline.

Meanwhile, Ethereum prices witnessed a modest recovery over the weekend following news that U.S. asset manager Franklin Templeton had registered an Ethereum spot ETF with the U.S. Securities Depository (DTCC). However, industry analysts remain pessimistic about the likelihood of approval in May 2023.

Justin Sun, founder of the cryptocurrency "Tron," expressed skepticism about the approval of the Ethereum spot ETF in the near term. He emphasized the need for the cryptocurrency industry to implement a long-term educational strategy to foster a better understanding among regulators.

Positive News from Australia

Amidst the mixed market sentiment, positive news emerged from Australia. Bloomberg reported on October 28 that the Australian Stock Exchange (ASX) is expected to approve a spot Bitcoin ETF within the year.

VanEck Australia branch and BetaShares Holdings have applied to launch Bitcoin spot ETFs in Australia. ASX, which handles approximately 80% of Australian stock trading, is anticipated to approve the launch of the country's first Bitcoin spot ETF by the end of 2023.

Justin Azaden, general manager of Beta Share's digital asset business, highlighted the success of Bitcoin spot ETFs in the U.S. as evidence of the growing demand for digital assets. Beta Share has also secured a ticker on ASX for the launch of Bitcoin and Ethereum (ETH) spot ETFs.

On-Chain Metrics

According to blockchain data analysis company CryptoQuant, the total amount of Bitcoin held by global virtual asset exchanges currently stands at 1,930,593, representing a 0.11% increase from the previous day.

The Coinbase premium, which reflects buying sentiment among U.S. investors, is currently -0.0075%. In contrast, the kimchi premium, which measures buying sentiment in the Korean market, is reported to be 4.18%, indicating a decline in buying sentiment in both regions.

Unliquidated contracts, which measure the number of contracts that have not yet closed their positions in the futures market, have dropped by 2.91% from the previous day and 0.09% from a week ago.