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As stock indexes reach multi-month and even all-time highs, the cryptocurrency market is treading water at a one-month high, having lost 0.45% in the past 24 hours. Given the positive momentum in global stock markets and the nature of recent gains, the latest pullback looks like a consolidation of forces ahead of a possible new surge. Additionally, the strengthening dollar has also put pressure on cryptocurrencies.
So far, Bitcoin has failed to consolidate above the 200-day moving average. In the morning, the price pulled back on stop orders in low liquidity at $62.7,000, but then added $1,000 at the time of writing. This has become a typical departure from the extremes of recent days. Over the past week, Bitcoin has formed a sideways channel just under $2,000 wide with a slight upward bias that now extends between $62.7k and $64.5k. Exceeding this threshold could start a medium-term trend after the current lull.
News context
Bitfinex believes that Bitcoin’s rally in September was primarily driven by activity in derivatives trading amid weak demand in the spot market. BTC needs to consolidate above the August high of $65,200 to continue its rally.
Bitcoin is wrongly considered a risky asset because of its frequent correlation with the stock market, said Robert Mitchnik, head of BlackRock’s crypto division. According to him, BTC is a “rare, global and decentralized asset, which is not tied to any particular country and which is devoid of traditional counterparty risk”.
The US SEC has delayed until November 10 its decision on Nasdaq’s proposal to list options on the Ethereum ETFs from BlackRock and Bitwise.
The SEC has reached a settlement agreement with TrueCoin and TrustToken. The companies will pay a fine of $500,000 for illegally offering investment contracts in the form of stablecoin TrueUSD (TUSD).
The court sentenced Caroline Ellison, former director of Alameda Research, to two years in prison and forfeiture of $11 billion for fraud and money laundering.
BNY Mellon, the world’s largest custodian bank, plans to enter the custody market for Bitcoin and Ethereum-based spot ETFs. Bloomberg noted that such a move would threaten Coinbase’s dominant position.
The team behind Telegram trading bot Banana Gun has confirmed plans to reimburse 11 affected users for the $3 million stolen in the September 19 hack.
