The crypto market is down today, with the cryptocurrency market capitalization decreasing by 1.1%, now standing at $3.95 trillion. Nearly 90 of the top 100 coins have dropped over the past 24 hours. At the same time, the total crypto trading volume is at $156 billion.
At the time of writing, 9 of the top 10 coins per market capitalization have seen their prices decrease over the past 24 hours.
Bitcoin (BTC) decreased by 1.2% since this time yesterday, currently trading at $114,289.
XRP recorded the only rise in the category. It’s up by 0.4%, trading at $2.64.
Looking at the top 100 coins, a dozen are up and the rest are in the red. Among the red coins, one recorded a double-digit fall. Pi Network (PI) fell 21.1% to the price of $0.2287.
Meanwhile, crypto lender Ledn has issued over $1 billion in Bitcoin-backed loans this year. This is a sharp rise in crypto credit demand as investors choose to borrow instead of selling during the bull market.
Moreover, Citi and Coinbase announced plans to develop digital asset payment capabilities for institutional clients. This could bring Wall Street closer to the digital asset ecosystem.
The collaboration aims to make it easier to move between fiat and crypto, and then to expand into payments orchestration for always-on settlement.
According to Glassnode, markets remain cautious, while several indicators point to “stabilization beneath the surface.”
Notably, selling pressure has eased, leverage has reset, and profitability is improving, they write. That said, participation and on-chain activity remain muted.
“Until conviction deepens and demand broadens, Bitcoin is likely to remain in a rangebound consolidation, with cautious optimism beginning to replace defensive positioning,” Glassnode concludes.
Meanwhile, Fabian Dori, Head of Investments at Sygnum Bank, argues that the US government shutdown is depriving investors of key economic data that helps them make informed decisions about inflation trends and market positioning.
“Adding to the uncertainty are the shock waves from the recent crypto flash crash, which exposed still-existing fragile points in the market structure and leverage in altcoins that were difficult for stressed liquidity to absorb,” Dori says.
He argues that “this confirms, once again, the need for a comprehensive market structure bill, which is also impacted by the political stalemate.”
Therefore, various market indicators – including a brief drop of the fear & greed index into the ‘fear’ territory, the spike in Deribit’s BTC volatility index, and average borrowing and lending APYs cooling from peaks – indicate that “many investors are still digesting the recent happenings and are trying to look through the settling dust.”
“Given constructive business-cycle signals, resilient corporate earnings, accommodative liquidity, and ongoing institutional adoption of crypto, CPI readings that modestly undershot expectations and validated the Fed’s projection of a mid-term easing in inflation pressures could help reignite investor risk appetite,” Dori concludes.
At the time of writing on Tuesday morning, BTC trades at $114,289. For the first part of the day, the coin traded sideways until it reached the intraday high of $115,755, before it plunged to the day’s low of $113,599 near the time of writing.
A breakout above $117,600 could lead to a move toward $120,500 and, subsequently, $124,100. However, a failure to hold this level may lead to a retest of the $112,250 zone.
Ethereum is currently changing hands at $4,120. Its price initially jumped to the day’s high of $4,231. It then dropped to the intraday low of $4,072, before recovering slightly to the current level.
If ETH moves above $4,250, it may retake the $4,400 and $4,530 levels. If the bullish trend continues, the price may proceed towards $5,000. But a fall below $4,050 could lead to a decrease below the $4,000 mark and toward $3,900.
Meanwhile, the crypto market sentiment stands unchanged over the past day, staying within the neutral zone. The crypto fear and greed index remains at 42 today.
The sentiment level suggests continuous caution among market participants, as they await additional geopolitical and economic signals that would point to the direction the market may take in the near to mid-term.
The US BTC spot exchange-traded funds (ETFs) recorded $149.3 million in inflows on Monday, for a third consecutive day. The total net inflow now stands at $62.13 billion.
Of the 12 ETFs, three recorded inflows, and there were no outflows. Ark&21Shares took in $76.4 million, followed by BlackRock’s $65.27 million and Grayscale’s $7.63 million.
Moreover, the US ETH ETFs broke the outflow streak on 27 October, with $133.91 million in inflows. The total net inflow now stands at $14.49 billion.
Six of the nine finds saw positive flows, and none saw outflows. Grayscale leads the list with $72.49 million, followed by Bitwise’s $22.59 million.
Meanwhile, S&P Global Ratings gave Michael Saylor’s Strategy a ‘B-‘ credit rating, a level considered junk or speculative grade. It is the first Bitcoin treasury company to receive a formal credit grade from a major agency.
The firm got the rating due to its heavy Bitcoin exposure, limited business diversification, and weak dollar liquidity. S&P said the outlook for the company remains stable.
The crypto market has decreased over the past day, and the stock market surged and set new intraday and closing ATHs during work hours on Monday. By the closing time on 27 October, the S&P 500 was up by 1.23%, the Nasdaq-100 increased by 1.83%, and the Dow Jones Industrial Average rose by 0.71%. Major stock indexes set records for a second consecutive session on renewed optimism that the US and China could see a trade deal.
Analysts expect additional, intermittent drops in the market’s search for a stable base that would enable the next leg up. Nonetheless, we’re likely to see more brief lasting in the near term as well.
