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 USD8180 per $BTC, holding an USD147bn market capitalization, seemigly slipping downwards while the top currencies follow the biggest currency downwards once again.
Over the past 24 hours $BTC records a 1,35% loss while its high market dominance fell to 66,5%, 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 Cash, $BCH, which lost 2,46% of its value while the best performing currency among the top ten by market capitalization once again goes to Binance Coin, $BNB, which managed to sustain most of its value, losing only 0,23% over the past 24 hours.
In the traditional markets, major stock indices opened the week in the green but have since turned to move downwards - the S&P 500 records a 1,56% loss on October 8th, the Dow Jones Industrial Average has lost 1,19% while FTSE 100 Index is recording a 0,76% loss. The SSE Composite Index is, likewise, recording a 0,14% 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:
Jennifer Robertson, the widow of the deceased QuadrigaCX founder Gerald Cotten, has decided to hand over the majority of her estate assets, valued at around USD9M to Ernst & Young Canada.
TipJar, a service allowing reddit users to tip other users using cryptocurrency micro-transactions on the ETH network has been shut down due to low activity.
Read more: Reddit Tipping Service TipJar Shuts Down
Valdis Dombrovskis, the Finance Commissioner of the European Union, has pledged to propose a new regulatory framework that aims to define the status of cryptocurrencies such as Facebook's upcoming crypto project libra.
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