During the European session, the cryptocurrency market continued to underperform, with the global crypto market cap down 10% from yesterday and DeFi coins down more than 11%.
Similarly, Bitcoin has dropped more than 10% and is now trading at $16,605. At $18,170, it broke a triple bottom pattern.
FTX and Alameda Controversy
FTX and its subsidiary, Alameda Research, are in hot water. FTX tokens account for a sizable portion of Alameda’s asset holdings. This information suggests that sister companies are more interconnected than previously thought. The latter balance sheets are the source of contention between the two companies.
Concerns about the FTX balance sheet triggered a dramatic shift lower in the market following the Binance LOI for FTX. According to reports, FTX was attempting to secure $6 billion in funding to close the gap on their balance sheet, which could jeopardize the deal.
Terra Luna’s bank run and eventual collapse of LUNA Classic reverberated throughout the cryptocurrency market in May 2022, resulting in Bitcoin’s first 7-week losing streak.
Investors are drawing parallels between the recent FTX bank run, the reported large budget gap, and what happened earlier this year with Terra Luna.
These concerns heighten investors’ skepticism about the cryptocurrency market as a whole. As a result of investors’ concerns about FTX’s solvency, the value of cryptocurrencies is declining. As a result of the news, BTC/USD has dropped to new lows.
Upcoming CPI Report
The Consumer Price Index data show that inflation in the United States increased by 0.6% in September. The CPI report, the most commonly used indicator of inflationary pressure in the United States, increased by 8.2% between September 2021 and September 2022, slightly higher than the 8.1% predicted by experts.
During the most recent FOMC meeting, Jerome Powell repeatedly stated that the data must be awaited before deciding on the next steps in interest rate policy. As a result, tomorrow could be a watershed moment for the financial markets.
Due to the upcoming CPI reporting event on November 10, BTC/USD experienced a volatile drop in 24 hours, reaching record lows for 2022.
US Dollar Rises as Investors Await Midterm Election Results
The US dollar remained close to its two-month low against the euro as traders awaited the results of the US elections and inflation data this week, which would contribute to interest rate forecasts.
The US dollar index, which is on track to have its best year in nearly four decades, has dropped by about 1% this week and was trading around 109.68 on November 9.
The dollar’s value has risen recently after falling, which also keeps downward pressure on the price of Bitcoin.
Bitcoin Price Prediction
The current Bitcoin price is $$16,739, with a $113 billion 24-hour trading volume. Bitcoin has plunged more than 9% in the last 24 hours and over 18% in the last seven days.
CoinMarketCap now ranks first, with a live market cap of $322 billion. It has a total quantity of 21,000,000 BTC coins and a circulating supply of 19,202,868.
On the technical front, Bitcoin has breached a triple bottom support level of $18,244; closing candles below this level could lead BTC to $16,332. Bitcoin has also formed a “three black crows” pattern on the daily timeframe, indicating the likelihood of a downtrend continuation.
As a result, increased selling pressure on Bitcoin could drive its price down to $14,500.
Since the leading technical indicators, such as the RSI and MACD, have entered the oversold zone, closing candles above $16,300 may initiate a bullish correction. On the upside, Bitcoin’s immediate resistance level remains at $18,244.
A Crypto Pre-Sale With Massive Potential
Dash 2 Trade (D2T)
Dash 2 Trade is an Ethereum-based trading intelligence platform that provides real-time analytics and social data to traders of all skill levels, allowing them to make more informed decisions.
It started its token sale two weeks ago and has now raised over $5.7 million, while also confirming its first CEX listing on LBank exchange.
1 D2T is currently worth 0.0513 USDT, but this will soon rise to $0.0533 in the next stage of sales and $0.0662 in the final stage.
Source: cryptonews
Recent Comments