Market Picture
The crypto market did not support the impressive rise in risk appetite on traditional finances. Their combined capitalisation fell 1.7% over the past 24 hours to $1.055 trillion – the lowest in almost two weeks.
Bitcoin fell below $27K in early trading on Wednesday. This is the fifth consecutive day of decline after a failed attempt to consolidate above the 200-day MA late last week. Currently, BTCUSD has pulled back to the upward channel’s lower boundary. The ability to push back from there will confirm the formation of an uptrend. For now, this is the preferred scenario.
A consolidation below $27K will likely intensify the sell-off and open the way for a quick drop to $26K (previous local highs) and further to $25K.
While Bitcoin tries to stay within an uptrend, Ethereum has fallen to $1550, not far from the September lows. This dip below the 200-week MA could demonstrate the market’s bearish bias. And Bitcoin’s stronger momentum is a result of institutional buying.
Ethereum came under pressure amid asset sales. The Ethereum Foundation sold some of its assets – 1,700 ETH – on the decentralised exchange Uniswap and converted the proceeds into USDC $2.7 million worth of stablecoins.
News background
Bitfinex points out that the number of bitcoins available to speculators has continued to fall to its lowest level in almost eight years. On the other hand, holders have increased the number of coins in their wallets to a new record.
According to Bloomberg, Binance has closed the widely publicised project to support the cryptocurrency industry’s Industry Recovery Initiative, to which it had pledged at least $1 billion following the collapse of FTX. The initiative only managed to raise $64 million from one of the announced participants.
According to Santiment, cryptocurrency purchases could start soon. According to its data, investors have withdrawn $10 billion worth of Tether stablecoins to exchange wallets. The replenishment of addresses has been observed since mid-September, and now the volume of USDT on trading platforms is at its highest since March 2023.
