From Bitcoin to Ethereum and Popular Altcoins, Prices Are Going Down
From Bitcoin to Ethereum and popular altcoins, prices are going down – what’s causing this drop? Is it a short slump or a sign of bigger trouble?
Key Takeaways
- In the past week, the prices of leading cryptocurrencies, Bitcoin and Ethereum, decreased by 5.5% and 11.3% respectively.
- The overall market sentiment remains bearish to neutral for dominant cryptocurrencies and popular altcoins.
- Both political and economic uncertainties, coupled with crypto liquidations and technical market events, are driving the market downturn.
- Experts are expecting a market recovery soon, given that the economy remains stable.
The prices of the dominant cryptocurrencies, such as Bitcoin and Ethereum, declined considerably in the past week. The popular altcoins like Dogecoin also followed suit. The overall crypto market is experiencing a downturn amidst uncertain politico-economic conditions and billions of dollars worth of crypto liquidations.
Leading Cryptocurrencies and Popular Altcoins are Struggling
September was a tumultuous month for cryptocurrencies. The prices of leading cryptocurrencies, Bitcoin and Ethereum, have decreased by 5.5% and 11.3% respectively, in the past week alone. The overall market crash didn’t spare the popular memcoins either. The Dogecoin price dropped more than 17 % in the past week.
The Bitcoin (BTC) decreased 0.53% in the past 24 hours, and is currently trading at $109,348.49. The trading volume had decreased by 37.65% in 24 hours. The Fear & Greed Index is currently at 33, indicating fear. The overall market sentiment remains bearish.
Etherium is faring slightly better with $3,991.83, but the bearish sentiment continues, and the Fear & Greed Index remains fear. The trade volume of ETH has decreased by more than 40% in the past 24 hours. Additionally, ETH only had 13 green days in the past 30 days.
The Dogecoin is currently trading around $34.8 billion, and the trade volume of the popular memecoin has decreased more than 30% within a day’s timeframe. The market sentiment remains neutral amidst a very high volatility of 10.06%. The other altcoins are not faring any better.
What is Causing the Price Drop?
The crypto market is under pressure due to multiple reasons, ranging from political to macroeconomic to market-specific triggers.
- The occurrence of $1.6 billion worth of liquidations in the past few days has triggered panic in the crypto market. Although cryptocurrencies have shown considerable resilience, they are still reeling under the aftermath of the event referred to as ‘Red September’.
- Speculations about a possible shutdown of the U.S government have further exacerbated the market uncertainty.
- The macroeconomic uncertainty due to increasing inflation, a weak labour market, and overall economic slowdown is reducing the risk appetite among investors. Amidst economic uncertainties, investors are moving away from the riskier crypto market. Even the institutional investors are following suit. Large amounts of outflows happened from BTC ETFs in the past week.
- Furthermore, billions of dollars worth of BTC and ETH options are about to expire; any movements from these could trigger high volatility in the market.
Both political and economic uncertainties, coupled with crypto liquidations and technical market events, are driving the market downturn. The profit-taking by long-term holders coinciding with the downturn is further adding pressure to the already volatile market.
Crypto Market: Future Outlook
Although the crypto market witnessed heavy blows in the past week and is still reeling under pressure, it is worth noting that crypto coins, such as XRP, have shown considerable resilience. Experts are expecting a market recovery soon, given that the economy remains stable. Amidst the uncertainties, Investors can reduce risks by adopting strategies such as employing stop-loss orders, diversifying the portfolio, and doing thorough research before making investment decisions.
The post From Bitcoin to Ethereum and Popular Altcoins, Prices Are Going Down appeared first on BiteMyCoin.
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