Bitcoin Drops Below $27K; Analysts See More Pain
By Laxmikant Khanvilkar
Leading virtual digital assets (VDAs) continue to trend lower as bearish narrative prompted investors to liquidate their positions. The weak price action of crypto occurred as traditional markets continued to post gains, while the 10-year U.S. Treasury came off their recent highs.
Price of Bitcoin (BTC), the world’s most valuable cryptocurrency, slumped below $27,000 for the first time since the start of the month as four-day rally in stocks and three consecutive days of falling bond yields failed to ignite any buying interest in the crypto.
It is currently resting at $26,796.28 down 2.32%.
Ethereum (ETH), the second largest crypto in market value, was quoting 0.69% lower at $1,560.61.
Analysts have said that the recent steadiness showed by BTC seems to have fizzle out after the crypto failed to break above a heavy resistance at around $28,000, a confluence of the 200-day and 200-week moving averages. They expect the that “narratives to shift bearish” for bitcoin if “spot holders start unwinding in fear or lower prices,” hinting at a potential fall below $25,000.
Elsewhere, the large-cap cryptos, the Ripple Labs-related (XRP), litecoin (LTC) and Polkadot’s native token (DOT) fell 2%-3%.
Crypto derivatives traders who bet on higher prices with long positions suffered $50 million in liquidations during the day,
The global crypto market cap declined 1.31% to $1.05 tn, over the last 24-hours. On the other hand, the total crypto market volume rose 14.41% to $27.2 bn. The total volume in DeFi is currently $1.97 bn and all stablecoins $25.67 bn, representing 7.26% and 94.38% respectively, of the total crypto market 24-hour volume. Bitcoin’s dominance decreased 0.37% to 49.82%.
IC15 index, the barometer of top fifteen tokens, lost 1.54% to 34,217.81.
Meanwhile, the weak price action of crypto occurred as traditional markets continued to post gains. In economic news, the U.S. Producer Price Index (PPI) for September came in a bit stronger than expectations. The minutes from the most recent meeting of the Fed’s Federal Open Market Committee (FOMC) showed most expect one more rate hike before the monetary tightening cycle is complete.
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