Bitcoin (BTC) and Ethereum (ETH) both neared a two-month low, with market participants closely monitoring their movements in response to the recent release of the Federal Open Market Committee (FOMC) minutes. Bearish sentiment increased following the latest FOMC minutes, where the Federal Reserve hinted at further rate hikes, said CoinDCX Research Team.
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Explore NowThe crypto tokens were trading in the deep red in Friday’s trade as FOMC expressed concerns about inflation and the need to increase interest rates, and concerns around China’s economy.
Bitcoin dropped nearly 8% to slip below $26,500. Its largest peer, Ethereum, declined 7% to $1,680. Other top crypto tokens, BNB (6.4%), XRP (16.3%), Dogecoin (9.3%), Solana (6%), Shiba Inu (12%),
Polygon (7.7%) and Litecoin (14.4%) were also trading lower on Friday.
Meanwhile, the global cryptocurrency market cap plunged 7.25% to around $1.05 trillion.
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View Details »Bitcoin (BTC) and Ethereum (ETH) both neared a two-month low, with market participants closely monitoring their movements in response to the recent release of the Federal Open Market Committee (FOMC) minutes. Bearish sentiment increased following the latest FOMC minutes, where the Federal Reserve hinted at further rate hikes, said CoinDCX Research Team.
The market cap of Bitcoin, the world’s largest cryptocurrency, declined to $514 billion. Bitcoin’s dominance is currently 48.57%, according to CoinMarketCap. BTC volume in the last 24 hours shot up 97.36% to $32.96 billion.
“The crypto market has continued to sharply fall for the second consecutive day. The mass sell-off in the crypto market has led to a plunge in the crypto fear and greed index, which is down 13 points and has entered the fear zone after over 5 months, with a score of 37/100,” Parth Chaturvedi, Investments Lead at CoinSwitch Venture, said.
“According to market data, investors have registered $1 billion in losses in liquidations in the last 24 hours. BTC is trading around $26.5k after it broke below its critical support level of $28k, its lowest since June. XRP led the losers after a US judge granted approval to the SEC to file a motion to appeal the recent ruling which favored Ripple Labs regarding retail sales of XRP,” he said.
Parth further added, there has been a potential devaluation of the Chinese Yuan, which is trading at the weakest level since 2007. Historically, when China devalued the Yuan last time in August 2015, BTC prices witnessed a plunge.
Tech view by Sathvik Vishwanath, Co-Founder & CEO, Unocoin
BTC is hovering around $26,400. Bitcoin’s recent drop below $27,000 indicates a bearish move with the potential for further declines to $26,000. A break at $26,000 could lead to a deeper decline towards $24,840. Conversely, a positive rally above $30,000 could push the price of Bitcoin to $31,700.
Payments giant PayPal will stop allowing UK customers to buy cryptocurrencies through its platform from October as it works to comply with new rules on crypto promotions.
Britain’s financial regulator is due to bring in tougher rules to limit how crypto is advertised to British consumers, including requiring crypto firms to carry warnings about the risk and scrapping “refer a friend” bonuses.
PayPal will “temporarily pause” the ability for customers to buy crypto on its platform from Oct. 1 as it works to satisfy the new regulations, which come into effect on Oct. 8, it said in an email to customers on Tuesday. It said it expects to re-start in “early 2024”.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)