A widespread market selloff putting the most pressure on risky assets caused Bitcoin BTC USD and other cryptocurrencies to decline. In recent months, cryptocurrencies have demonstrated a degree of durability. Still, that story was beginning to fall apart as tokens dropped off at an even quicker rate than equities.
Bitcoin’s price has dropped by 6% over the previous 24 hours, bringing it down to $18,900 and closer to its annual low of around $18,500. It marks a significant change for the most extensive digital asset. On Tuesday, it was trading near $20,500 amid confidence among crypto traders had found its bottom in this lousy market. This euphoria was fueled by the belief that it had reached its lowest point in this bear market.
“At one point on Tuesday, Bitcoin exhibited incredible resilience, trading more than five percent higher and beating the larger market in an imposing manner. Craig Erlam, an analyst at the broker Oanda, said it was a shame that it didn’t persist for very long. “Although the risk environment is quite unfavorable, we observe solid support around $17,500-18,500.” If that trend continues, the bounce may be significant. The issue is, “For how much longer can it maintain its current resistance level if risk assets continue to trend lower?”
In general, cryptocurrencies have proved to be tied to other risk-sensitive assets, as seen by their concurrent decline this year with the Dow Jones Industrial Average and the S&P 500 in response to a pessimistic perspective regarding the economy.
But recent gains have come despite weakness in equities, with experts watching fundamental signs in the crypto market that suggest digital assets might rise higher. This is even though fundamental indicators in the crypto market imply digital assets could grow higher. That could be the case. Token prices were tumbling as stock indices worldwide continued their downward trend. This susceptibility to broader market sentiment continues to be Bitcoin’s most significant risk factor.
The focus remains on macro forces, with a strengthening U.S. dollar—which reached a new 20-year high on Wednesday—and rising bond yields heaping pressure on cryptos and stocks alike and exacerbating a selloff that has rocked markets over the past few weeks. Cryptocurrencies and stocks are both feeling the effects of this pressure.
Current Price of Bitcoin
The current price, far lower than $20,000, is at a level that has encouraged long-term investors to purchase the cryptocurrency. Although the token has spent most of the time since the middle of June fluctuating between 20,000 and 25,000 dollars, it had periodically dipped below 20,000 dollars before traders rushed in to buy.
Indeed, the activity observed in the crypto futures market demonstrates the comeback of bullish speculators. The open interest, which refers to the total number of derivative contracts for perpetual futures—the cryptocurrency asset traded the most frequently overall—has significantly increased over the previous two days.
Earlier this week, Joe DiPasquale, the crypto asset management BitBull Capital CEO, stated that the company continues to believe that a price below $20,000 is a solid accumulation opportunity for medium to long-term perspectives. “That being said, the $18,000 level has continued to give solid support. If it doesn’t break down in the following days, we might see higher action in October, with $24,000 and $26,000 being the first targets to monitor,” added the analyst.
Besides, the value of Ether (ETHUSD), the second most popular cryptocurrency, dropped by 7% to $1,275. Altcoins, often known as alternative cryptocurrencies, performed just as poorly, with Solana SOLUSD falling 6% and Cardano falling 5% into the red. Memecoins were also trading down, with the Dogecoin DOGEUSD dropping 4% and the Shiba InuSHIBUSD trading down 3%, respectively.
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