The cryptocurrency market experienced a slight dip of 0.2% to $2.12 trillion in a 24-hour period, with a notable drop during the US session before bouncing back with lower volumes in Asian trading on Friday morning. The Sentiment Index also fell to 32, indicating fear among investors.
Bitcoin’s performance throughout the week has been marked by declines during the US session, with a significant sell-off seen on Wednesday and Thursday leading to losses exceeding 3%. The price of Bitcoin dropped below $59K before recovering to $60.5K at the time of writing. Despite the previous day’s sell-off pushing BTCUSD below its 50-day MA, the price is now attempting to move higher.
Ethereum, on the other hand, returned to $2,400 on Friday, starting the week at the same level. The anticipated rally from the previous week did not materialize, and the failure to reach the local low once again touched the 200-week MA, a long-term support line that Ethereum has struggled to break away from for nine weeks. Ethereum’s performance in 2020 has been weaker compared to previous years.
In terms of news background, QCP Capital highlighted the increase in funding rates for perpetual contracts as a sign of the market’s susceptibility to correction. Despite this, experts remain optimistic in the medium and long term, suggesting accumulation strategies as a way to navigate through the short-term correction.
OXT Research reported that 7,000 ETH amounting to $16.7 million seized from the organizers of the PlusToken cryptocurrency pyramid scheme have been transferred to exchanges. This move could potentially lead to the sale of the remaining 542K ETH worth $1.3 billion. Additionally, SEC chief Gary Gensler commented on the future role of Bitcoin and other cryptocurrencies, suggesting they may be viewed primarily as a store of value rather than a widely used payment instrument.
In a separate development, Nobuaki Kobayashi, the trustee of bankrupt crypto exchange Mt. Gox, announced an extension of the deadline for compensating affected creditors until 31 October 2025. This decision provides additional time for the resolution of the exchange’s outstanding issues.
Overall, the cryptocurrency market continues to experience fluctuations influenced by global market trends and regulatory developments. Investors are advised to stay informed and consider long-term strategies when navigating through the market volatility.
