A dark day for the crypto market

A dark day for the crypto market
A dark day for the crypto market


12h10 ▪
5
min read ▪ by
Evans S.

The crypto sphere is currently experiencing major turbulence, marked by a dark day for the market. The once-booming Bitcoin is suffering a significant drop, coming dangerously close to $60,000. Meanwhile, altcoins are not far behind, recording sharp declines. As the crypto universe grapples with this new reality, some signs of optimism persist. Let’s explore the causes, impacts, and prospects of this unexpected rout.

Bitcoin at the crossroads

Bitcoin’s price has fallen towards $60,000, ending a run of positive performance. At the time of writing, the flagship crypto is trading at $60,700, down 3% on the day and 1.4% on the week. Bears have taken control, pushing Bitcoin back towards this pivotal level.

The chart shows a sharp drop, followed by a precarious stabilization. The crucial question remains: will this support hold, or will the bears continue their assault to push bitcoin below this critical psychological threshold? The next few hours and days will be decisive for bitcoin’s immediate future.

Meanwhile, the market is closely monitoring any announcements that could influence the price of the flagship crypto. Investor sentiment is swinging between fear and hope, creating a palpable atmosphere of tension.

Most large-cap altcoins are also feeling the effects of this dark day. Ethereum, for example, is down nearly 3%, while BNB is down 2.2%, SOL is down 1%, and DOGE is down 1.4%. Even PEPE is not immune to this trend, falling 5.6%.

However, it’s not all doom and gloom in the altcoin realm. XRP, for example, has managed to stay in the green. This resilience is due to a positive update regarding the legal case between Ripple and the SEC. Judge Amy Jackson’s recent decision, dismissing the regulator’s allegations against Binance, has injected a wind of optimism into the XRP price.

Despite the gloom, these exceptions show that specific factors can still positively influence certain altcoins, even in a generally declining market.

Economic and political factors

The recent fall in Bitcoin also finds explanations in the speeches and decisions of economic authorities.

Jerome Powell, chairman of the US Federal Reserve, recently expressed reservations about an upcoming interest rate cut.

At an event in Portugal, he stressed the need for more convincing evidence on inflation before making monetary adjustments.

The Fed’s caution has dampened market sentiment, contributing to Bitcoin’s fall. Rate cut expectations at the Federal Open Market Committee (FOMC) meeting in September have been revised downward, adding to the general uncertainty.

Crypto market participants have watched with frustration as BTC/USD has returned to familiar levels. Popular trader Skew noted manipulative liquidity movements on exchanges, making the situation worse. Additionally, Bitcoin miners are going through a capitulation phase, adding further pressure on the price.

The crypto market is currently going through a period of intense turbulence, marked by a significant drop in Bitcoin and altcoins. However, pockets of resilience and optimism remain, offering reasons to hope for a future recovery. Upcoming economic and political decisions will be crucial in determining the market’s trajectory.

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Evans S.

Fascinated by bitcoin since 2017, Evariste has continued to research the subject. While his first interest was in trading, he now actively tries to understand all the advances centered on cryptocurrencies. As a writer, he aspires to consistently deliver high-quality work that reflects the state of the industry as a whole.

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