Bitcoin and Other Cryptocurrencies Struggle as Market Sentiments Dampen
**Bitcoin, Cryptocurrency Prices Struggle Amid Rate Hints**
Bitcoin and other crypto tokens were struggling on Wednesday as the hints of higher rates for a prolonged period dented the market sentiments. The rise in US Treasury yields also pushed the riskier asset class lower. The global macroeconomic cues will guide the markets going ahead.
**Bitcoin and Ethereum in Downward Trajectory**
Bitcoin was back in the downward trajectory as the largest crypto token declined about half-a-per cent but managed to hold above $26,000-levels. However, its largest peer, Ethereum, inched up slightly on the similar lines but could not race-past $1,600-mark. Price action in the altcoins remained on the downside in the early hours.
According to Edul Patel, Co-Founder & CEO at Mudrex, “Bitcoin has seen a 0.58 per cent increase in value this month, and an impressive 58 per cent gain for the year thus far. Meanwhile, Ethereum remains in a trading range between $1,550 and $1,600. In other news, four members of the US House Financial Services Committee have urged the SEC to expedite the approval of ETF applications.”
**Major Crypto Tokens Trading Lower**
Barring a few exceptions, all top crypto tokens were trading lower on Wednesday. Polygon dropped about 3 per cent, while Toncoin and Solana declined more than 2 per cent each. Polkadot, Litecoin, and Shiba Inu were down a per cent each.
**Global Cryptocurrency Market Cap Drops**
The global cryptocurrency market cap was trading slightly lower, falling to $1.05 trillion-mark, as it dropped about half-a-per cent in the last 24 hours. However, the total trading volumes plunged about 15 per cent to $19.47 billion. Among the gainers, Dogecoin and BNB rose about a per cent each.
**Tech View by Giottus Crypto Platform**
Bitcoin (BTC) is consolidating just below its key moving averages after failing to decisively breach them earlier this month. Its RSI is in neutral territory (46) with a 5-year low in volume of trade on exchanges – indicating a wait and watch approach by long-term investors. This comes in spite of a $147 million BTC buy by MicroStrategy.
**Bitcoin’s Future Price Action**
The asset needs to take out the $28,200 level that sits around its 100-day MA to maintain a bullish bias leading into Q4 this year. Key psychological support zone at $25,000 has been held successfully in the recent past while a drop further down to $23,500 can’t be ruled out if volumes weaken further. That said, Bitcoin is up ~1% this month, and will mark the first time in 7 years that September isn’t red for the asset if it stays so this week.
**Conclusion**
The struggle for Bitcoin and other cryptocurrencies continues as hints of higher rates and US Treasury yields dampen market sentiments. Although Bitcoin and Ethereum are in a downward trajectory, long-term investors show a wait-and-watch approach. The global macroeconomic cues will guide the markets going forward.
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.
