Crypto fails to bounce off the bottom

Market Picture

The cryptocurrency market failed to move significantly from the previous day’s levels, losing 0.5% to $2.07 trillion. Crypto followed the stock market but was noticeably weaker. Smooth growth during the day was wiped out by a late sell-off, taking capitalisation back to the local lows of recent days. Sentiment in the crypto market remains in the fear zone, with the index at 34 (+5 for the day).

Bitcoin approached $61K on Thursday, buoyed by hopes that the equity market would be able to digest the fall in Nvidia shares. However, a sell-off in the second half of the session showed that the bears were in control and the breakout was false. In early trading on Friday, BTC rolled back to $58.8K, an area of lows since August 28th.

The technical picture didn’t change much during the day: the ability to consolidate above $60K will open the way for sustained buying, while a sustained dip below $59K will accelerate selling. There could be many false signals between these levels.

News Background

Another recalculation showed that the first cryptocurrency’s mining difficulty increased by 2.99% to 89.47 T. The average Hash Rate reached a maximum value of 718.28 EH/s, indicating the continued connection of high-performance equipment.

OpenSea, one of the largest NFT trading platforms, received a warning from the US SEC about possible legal action for securities trading.

The team behind an L2 solution for Bitcoin called Stacks announced the start of the Nakamoto upgrade process. This process decouples the block production schedule from the cryptocurrency’s network. The activation will increase transaction speeds and provide a foundation for smart contracts using the BTC network as a base layer.

Donald Trump has promised to make the US the ‘crypto capital of the planet’. He announced a plan to help the US strengthen its leadership position in cryptocurrencies. Sales of Donald Trump’s fourth NFT collection exceeded $2 million. He earned ~$7.16 million in royalties from the previous three collections.

The TON team fixed the second blockchain outage in 24 hours. The outage was apparently caused by the heavy load associated with the DOGS meme token issue.

The FxPro Analyst Team