Cryptocurrency Market Struggles as Investors Remain Cautious
Bitcoin was in a downward spiral on Thursday, as the largest crypto token dropped by about one percent but managed to hold at $26,500. The market remained relatively quiet, with buyers staying on the sidelines despite a strong rally in the equity market and a fall in bond yields.
US Inflation Data and Fed’s Minutes Impact Market Sentiments
The lingering uncertainty in the market was further compounded by the release of the US PPI for September, which was stronger than expected. Additionally, the US Federal Reserve’s minutes showed that most market participants expect another round of rate hikes to complete the current tightening cycle.
Concerns Over Crypto Donations to Hamas and its Affiliates
In a separate report by the Wall Street Journal, it was revealed that the Hamas terrorist organization and its affiliates received approximately $93 million in crypto donations between August 2021 to June 2023. Data from Elliptic, a forensics firm, and BitOK, a Tel Aviv software company, showed that cryptocurrency is often used as a subterfuge financing method for such militant groups.
Mixed Performance of Crypto Tokens
Bitcoin’s price dipped below $27,000, signaling an active effort by bears to gain control of the market. Edul Patel, Co-Founder & CEO at Mudrex, observed that Bitcoin will need to break through the $27,000 resistance or potentially receive support around $26,600. Ethereum was trading around the $1,560 mark.
Top crypto tokens were trading mixed on Thursday, with Litecoin dropping about 3 percent, Solana down about 2 percent, and Dogecoin and Polkadot shedding about 1 percent each. Conversely, Chainlink rallied more than 2 percent, while Toncoin was up about 1 percent.
Global Cryptocurrency Market Cap and Trading Volumes
The global cryptocurrency market cap was trading lower, dropping to the $1.05 trillion mark. However, the total trading volumes rose over 2 percent to $25.81 billion in the last 24 hours.
BTC Slides as Traditional Banking Sector Makes Developments
BTC gained downward momentum, sliding for three consecutive days post touching the all-important $28,500 mark. Shubham Hudda, Senior Manager at CoinSwitch Markets Desk, warned that any further decline could lead to a sell-off, potentially taking Bitcoin down to $24,000 or beyond.
In other news, JPMorgan’s in-house blockchain Onyx has launched its tokenized collateral network. Investors across financial markets, including crypto, are looking forward to the US CPI data, which is expected to be released later in the day.
Tech View on REQ Utility Token by WazirX Trade Desk
The REQ utility token, introduced in 2017, plays a crucial role in upholding the reliability and robustness of the Request Network, a decentralized payment system built on the Ethereum platform.
The price for REQ/USDT surged nearly 50% in the last week on the weekly time frame. The trend is traversing within a descending channel pattern and has recently bounced off from the bottom trendline. The next resistance is expected at 0.14 USDT, with a strong support at 0.061 USDT.
The present market situation calls for caution as investors await the US CPI data and the further development of the cryptocurrency market.
I have been writing about crypto for over two years. I have a vast amount of experience in the industry and my work has been featured on some of the biggest publications in the space.
