LONDON (IT BOLTWISE) – The crypto market is experiencing a dramatic collapse triggered by a variety of factors. Bitcoin fell to $108,000, while Ethereum and other major cryptocurrencies also posted losses. Uncertainty in the markets is exacerbated by macroeconomic factors and technical developments.
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The crypto market is under pressure again as Bitcoin and other major cryptocurrencies suffered significant losses. Bitcoin fell to $108,000 while Ethereum fell over 3%. These developments resulted in over $100 million worth of liquidations within an hour. The market’s volatility reflects increasing uncertainty, compounded by macroeconomic factors such as recent comments from Federal Reserve Chair Jerome Powell. His hawkish comments have dampened expectations of an imminent interest rate cut and strengthened the U.S. dollar, prompting investors to turn away from risky assets.
Another factor weighing on the market is the movement of large amounts of Bitcoin by so-called whales. Since October 1, these investors have transferred nearly 13,000 BTC to major exchanges, fueling speculation about impending sales. These moves add selling pressure to the market as early investors potentially take profits. Owen Gunden, a well-known Bitcoin investor, has transferred 3,265 BTC to Kraken since October 21st alone.
Meanwhile, a different dynamic is emerging at Ripple. The company has locked 700 million XRP in escrow in a routine liquidity management step. This measure is intended to stabilize the market and regulate the supply of XRP. At the same time, the registration of eight XRP ETFs with the DTCC signals a possible institutional move that has the potential to change the market landscape for XRP.
Ethereum technical indicators point to a possible recovery. A liquidation scheme shows that a short squeeze could be imminent, which could result in a strong uptrend if the price clears certain resistance zones. Cardano is also showing signs of recovery as technical indicators point to a bullish divergence that has resulted in significant price gains in the past.
Overall, the crypto market remains in a fragile state as investors brace for a possible correction in the coming months. The combination of macroeconomic uncertainties, technical developments and institutional movements will significantly influence the direction of the market in the near future.
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