Bitcoin pressured by risk-off mood: Bitcoin faces pressure amid a risk-off mood, dropping below $56K. Crypto market cap dips under $2 trillion, with concerns over active wallet declines and rising selling pressure
Bitcoin pressured by risk-off mood
The pressure on risk assets continues, pushing the crypto market capitalisation back below the bi
milestone $2 trillion. This level acted as resistance in early February and support since May, except
for a brief dip in early August. The horizontal correction pattern risks turning into a downtrend if the
market breaks below the August pivot point near $1.85 trillion.
Bitcoin was under pressure for most of Thursday but made attempts to push back from the $56,000
level. However, on Friday, momentum selling at the start of the active European session pushed the
price down to a low of $55.25K and then stabilised below $56K.
Despite the dollar's weakness, the financial markets are still in an anxious and expectant mood, which
is not helping Bitcoin as much as it is helping gold. A key technical support level for the BTCUSD
remains just above $54K, but slippage in the event of a volatility spike could see the price briefly drop
below $53K.
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According to CryptoQuant, the number of active wallets in the Bitcoin network has fallen to its lowest
level in three years. Experts say this could lead to a further decline in the price of the first
cryptocurrency.
Glassnode identified new investors as a risk factor for Bitcoin. The average new entrant incurs
unrealised losses, which could increase selling pressure if BTC continues to fall. The break-even
point for short-term holders is $62,400.
CryptoQuant calculates that Ethereum has fallen 44% against Bitcoin since the switch to Proof-of-
Stake (PoS). Next week marks two years since the Ethereum network switched to PoS because of
The Merge upgrade.
According to JPMorgan, the average revenue for miners of the first cryptocurrency has fallen to
$43,600 per EH/s. Mining yields have hit record lows. Against this backdrop, the combined market
capitalisation of 14 listed mining companies fell 15% over the month.
Californian authorities limited withdrawals from crypto machines to $1000 per day. The initiative was
put forward by the California Department of Financial Protection and Innovation (DFPI).
