Sunday, October 2

BTC drops below $38K

For the second time this month, bitcoin price fell below $40,000. The main cryptocurrency touched floors of 38,000 to trade, at the time of closing this note, around USD 37,800, accumulating a down almost 10% in the last 24 hours.

Experts consider that the weak macroeconomic markets are causing a sale of risky assets. If this sentiment continues, the price of bitcoin is likely to trade near $30,000.

Analysts see rising rates, the latest jump in bond yields, especially US Treasuries, and the recent surge in real yields, non-income-producing assets like bitcoin and gold, is significantly affecting risk assets.

 

Thus, the market is experiencing bearish sentiment and investors are in a wait and see mood. A smooth decline without a significant bounce after the breakout of price support worries several bullish specialists.

Furthermore, this latest move appears to have caught the market by surprise as data suggests there is a significant amount of open interest stuck at $45,000-46,000 for bitcoin and $3,200-300 for ETH.

From the other side of the world, in China, investors seem to continue withdrawing money due to the country’s economic slowdown due to the latest waves of Covid, and to the next Spring Festival. The tightening of supervision of the few OTC desks that exist in the country is another reason why local retail investors want to exit the market.

According to CoinGlass, there have been almost $600 million in liquidations over the last 12 hours, with Bitcoin leading the way at $250 million, followed by ETH at $163 million and SOL at 10.9 million.

Looking at exchanges, Binance led liquidations with $173 million, with 91% long. Asia-focused exchange Okex was next with $170 million, most of which was long positions.

The largest settlement order occurred on Bitmex in the USDT-bitcoin swap and was valued at $9.91 million.

In the altcoin market, ETH registered a drop of almost 10% -trading at USD 2,770-, while Solana and Cardano have also been dragged down, registering decreases of 9% and 10% respectively.

 

Keep reading:

► Cripto247 Awards 2021, presented by IOVLabs: Bitcoin and Solana are the crypto assets of the year

► Ethereum loses prominence in the DeFi ecosystem

► Buterin’s proposal to lower the gas fees of the Ethereum network

 

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