Bitcoin and other major cryptocurrencies experienced losses on Monday, with Bitcoin trading below $26,000. The market was also impacted by news that the collapsed FTX exchange may liquidate its $3.4 billion in crypto holdings. Asian equities traded mixed, while US futures and European bourses gained ahead of key events such as the release of inflation data and a central bank policy meeting.
Bitcoin dropped 0.15% to $25,811 within 24 hours, bringing its weekly losses to 0.56%. Rania Gule, a market analyst at XS.com, noted that Bitcoin’s price is trading without a clear direction and its movement will be influenced by technical factors in the absence of significant news or legal decisions. Gule identified the support level of $24,995 as crucial for determining the future direction of Bitcoin’s price.
Ether, the native token of the Ethereum blockchain, fell 0.78% to $1,611 in the last 24 hours and experienced a 1.63% loss over the past week. Ethereum founder Vitalik Buterin’s Twitter account was hacked, resulting in losses for some of his followers. Hackers posted links to a scam non-fungible token (NFT) project on Buterin’s page, leading users to connect their crypto wallets and withdraw funds. Gule highlighted that Ethereum’s price indicators show signals of an ongoing bearish trend, with a potential 27% drop in price. She mentioned that the price could reach $1,200 with intermediate support at $1,366.
The crypto market also faced downward pressure due to news about FTX’s potential liquidation. It is expected that FTX will receive authorization to begin liquidating its crypto assets worth $3.4 billion. John Stefanidis, CEO of Balthazar DAO, stated that such a liquidation could significantly influence market values, particularly affecting Solana, Aptos, Dogecoin, Matic, TON, and XRP.
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Ripple’s XRP and Toncoin were among the biggest losers. XRP dropped 2.91% to $0.4857 in the past day and 3.54% over the past week. The US Securities and Exchange Commission (SEC) filed a motion to appeal the court’s ruling on the agency’s lawsuit against Ripple Labs. The SEC requested a review of the ruling by Judge Analisa Torres, which posed “knotty legal problems.” In July, Judge Torres ruled that Ripple’s XRP sales to institutional investors violated securities laws, while sales on public exchanges to retail investors did not. Ripple Labs also announced its acquisition of Fortress Trust, a crypto infrastructure startup based in Nevada.
The Group of 20 (G20) meeting, held under India’s presidency, highlighted the need for a coordinated global regulatory framework for cryptocurrencies. Kristalina Georgieva, managing director of the International Monetary Fund, emphasized the importance of implementing regulations promptly to avoid hindering the industry’s growth and leaving investors and consumers exposed to risks.
The total crypto market capitalization dropped to $1.03 trillion, while market volume increased to $20.63 billion. The NFT market also experienced a decrease, with the Forkast 500 NFT index falling 0.85% and total NFT sales volume dropping 4.08% in the past 24 hours. However, Ethereum remained the top blockchain in terms of sales volume, followed by Mythos and Polygon. Mythos-based DMarket topped the collection rankings.
In the Asian equities market, major stock markets traded mixed as investors awaited the release of US inflation data. China’s Shanghai Composite and Shenzhen Component Index, as well as South Korea’s Kospi, gained. Japan’s Nikkei 225 and Hong Kong’s Hang Seng index saw losses. In the US futures market, Dow Jones Industrial Average futures, S&P 500 futures, and Nasdaq 100 futures were all in the green. India’s benchmark index, Sensex, rose 0.79%. European bourses, including the STOXX 600 and Germany’s DAX 40, gained ahead of the ECB’s policy meeting on Thursday, which will provide insight into potential interest rate increases.
