The biggest and oldest cryptocurrency, Bitcoin, took a sudden swing above USD10000 in early September, dragging the rest of the market along for the ride and recording gains all across the board.
After range trading above USD10000 for the better part of August, $BTC took a violent swing downward, dipping into the lower USD9000 prices, remaining below USD10000 for a couple of days. While it seemed poised to break out above USD11000 in what some were calling the definite confirmation of the bull market being back, it has lost momentum since and it has slipped towards the psychological price tag of USD10000.
After dancing above the USD10000 for some time, even showing signs of an upward breakout, the number one cryptocurrency finally capitulated. In a violent downward movement, the biggest cryptocurrency shortly fell under the USD8000 price tag on several exchanges. Even though it has managed to recover since, it is still trading far below its previous valuation - at the moment of writing, $BTC is trading at USD8250 per $BTC, holding an USD148bn market capitalization, slowly recovering from a sudden dip below the USD8000 mark while the top currencies follow him upwards.
Over the past 24 hours $BTC records a 3,07% gain while its high market dominance fell to 66,7%, indicating that top currencies were tempered by the recent downward movement of $BTC and while there is much caution in the market, with little money pouring into alts due to the increased volatility, there is also reduced selling of alt currencies, showing faith in $BTC resuming his year to date upward trend.
The worst performing coin over the past 24 hours was Bitcoin SV, $BSV, which managed to record only 2,95% price increase, thus underperforming Bitcoin and the rest of the top ten currencies. It has to be noted however that the coin has been performing exceptionally well since the start of 2019, even though it has faced more than its fare share of controversies, speaking volumes of the support it enjoys from its community.
The best performing coin among the top ten currencies was $EOS, recording a 7,85% gain over the past 24 hours, continuing to be one of the best performing coins in the recovery attempt we've recently witnessed as $BTC price temporary stabilized last week despite its recent correction.
In the traditional markets, major stock indices opened the week in the green - the S&P 500 records a 1,42% gain on October 7th, the Dow Jones Industrial Average has gained 1,42% while FTSE 100 Index is recording a 0,08% gain. The SSE Composite Index is recording a 0,92% loss, continuing its recent negative performance trend.
The recent performance of traditional markets is of small wonder, considering the recent statements from the U.S. president, Donald Trump, who announced more trade tariffs will soon be introduced by the U.S., as well as the increase of global tensions due to the breakdown of the nuclear armament agreement between Russia and the United States. A possible end to the tensions in the financial market can be seen in the suspension of some trading tariffs China agreed to make before returning to the negotiating table with the US. Renewed trade talks and the possible negotiation of a better trade deal could bring much needed relief to the traditional markets. On the other hand, the tensions over Brexit in the UK continue to escalate as the new Prime Minister, Boris Johnson loses the parliamentary majority and the Scottish High Court found the recent prorogation of the parliament to be illegal.
With this last downward movement from $BTC, as well as both institutional investor gateways - Bakkt and VanEck ETF having poor performances, some are already calling for the return of the bear market. It remains to be seen how major currencies move from here, while keeping in mind that the entire market is almost three times up since the start of 2019 despite the violent drop we're witnessing at the moment.
News picks for the day:
The financial regulator of Hong Kong, the Securities and Futures Commission (SFC) has published a set of regulations for crypto fund managers.
Read more: Hong Kong’s SFC Releases Regulations for Crypto Fund Managers
The Ministry of Community Development (MOCD) of the United Arab Emirates has announced a competition for developing blockchain software for application in the social sector.
Read more: UAE Social Ministry to Grant USD16k in Blockchain Contest
As, the major cryptocurrency exchange, Bitfinex, and the stable coin issuer Tether, have speculated earlier this week, a class action lawsuit for market manipulation has been filled against the companies.
Read more: Class Action Lawsuit Filled Against Bitfinex and Tether
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The personal views and opinions expressed in this article are not investment advice. The author is not a financial adviser and you alone assume the sole responsibility of evaluating the merits and risks associated with the use of any and all information or views expressed in the article above.