Market image
The cryptocurrency market fell 6% to $2.08 trillion in capitalization, its lowest level in nine days. Bitcoin is following the general trend, while Ethereum and Solana are down 8.4% and 7.3% respectively. Gold also saw an almost synchronized decline, losing about 1%, but stock markets remain generally positive and optimistic.
Bitcoin fell below $58,000 on Wednesday afternoon, but then recovered to $59,000 as active trading began in Europe. The selloff intensified after a failed attempt to break above $65,000 on Monday afternoon, pushing the price back below its 200-day and 50-day moving averages. The premier cryptocurrency could be heading toward the lower end of the trading range as it heads toward $54,000. The market appears to be largely driven lower by automated stop orders during light trading hours. Such selling often forces leveraged traders out of the market, but also attracts long-term buyers on dips.
Ethereum briefly dropped below $2,400, its lowest level since August 8. There is a risk that this week’s drop is a second leg lower, following the collapse and consolidation that followed in previous weeks. A drop below $2,100 could confirm this hypothesis.
Current events context
CryptoQuant doubts that the bullish scenario will materialize soon due to the activation of big sellers. The bitcoin futures market also shows that traders are cautious.
According to Henley & Partners’ Crypto Wealth Report 2024, the number of investors holding at least $1 million in crypto has reached 172,300, up 95% from a year earlier.
The trustee of Celsius, a bankrupt lending platform, has distributed $2.5 billion in digital assets and fiat currency to creditors, repaying 93% of the company’s financial obligations.
Mining company Rhodium Enterprises has filed for bankruptcy with debts of up to $100 million.
