Major cryptocurrencies fell on Sunday as concerns about high inflation and the possibility of a Bitcoin liquidation by the US government weighed on markets.
Cryptocurrency +/- Price Rise (Recorded at 8:45pm EDT) Bitcoin BTC/USD -1.09%$62,567.27 Ethereum ETH/USD
-1.13%$2,454.49Dogecoin DOGE/USD -1.18%$0.1106
What happened: Bitcoin fell below $63,000, hitting an early morning low of $62,045 before recovering in the evening.
Ethereum oscillated around $2,400 as the bulls faced stiff resistance in their attempt to break above $2,500.
Ethereum’s year-to-date gain has narrowed to 7.77% thanks to a months-long downtrend since reaching nearly $3,900 in late May.
The Supreme Court’s refusal to hear a case challenging the government’s ownership of Bitcoin seized from the dark web market Silk Road has raised concerns and opened the door for the liquidation of up to 69,370 BTC.
Total cryptocurrency liquidations in the past 24 hours exceeded $100 million, and Bitcoin’s open interest fell by 0.38%.
Bitcoin’s long/short ratio further declined as traders placing bearish bets on major cryptocurrencies surged compared to those looking for price gains.
According to the Crypto Fear and Greed Index, market sentiment remains in the “neutral” zone.
Top Gainers (24 hours)
Cryptocurrency Gains +/- Price (Recorded at 8:45 PM EDT) Brett (BRETT)+11.85%$0.1103 Celestia (TIA)+11.57%$6.16 Esen (ENA)+7.82%$0.3578
Global cryptocurrencies shrunk by 0.89% in the past 24 hours to $2.19 trillion.
Stock futures traded just below the flatline on Sunday night. Dow Jones Industrial Average futures were down 11 points (0.03%) as of 8:45 p.m. EDT. Futures tracking the S&P 500 index fell 0.08%, and Nasdaq 100 futures fell 0.16%.
Major indexes such as the Dow and S&P 500 rebounded on Friday after falling on Thursday on better-than-expected inflation data.
That said, the chance of the Fed cutting rates another 0.25% next month is nearly 90% at press time, according to the CME FedWatch tool.
See more: Best Cryptocurrency Scanner
Analyst Note: Crypto analyst Michael Van de Poppe expects Bitcoin’s price action to continue for another day or two, with the $64,000 test the big breakout everyone has been waiting for. He added that it would bring about
“The accumulation is huge,” he said.
The situation will probably calm down in a day or two. #bitcoinHowever, we have already tested $62,000.
A test of $64,000 could result in the big breakout we are looking for.
The accumulation is huge.
— Michael van de Poppe (@CryptoMichNL) October 13, 2024
CrypNuevo, another widely followed technical analyst, drew attention to a “significant” liquidation cluster rising between $63,500 and $65,000.
“We may see an initial shakeout, especially early in the week, but prices should eventually head into that territory,” the analyst predicted.
“This could increase the risk of large price movements, so it is important to be careful,” Martinez predicted.
Due to this weekend’s range, there is a significant cluster of liquidations to the upside between $63,500 and $65,000. In that field we also have Wick and LP.
We may see an initial shakeout, especially early in the week, but prices should eventually head into that area. pic.twitter.com/CvLnmv7AFK
— CrypNuevo 🔨 (@CrypNuevo) October 13, 2024
Photo by SvetlanaParnikova from Shutterstock
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