Crypto market continues to consolidate: The crypto market consolidates at a one-month high, down 0.45% amid dollar strength and stock market gains. Bitcoin remains under the 200-day moving average, with a potential breakout ahead. Explore market trends and key crypto news
Crypto market continues to consolidate
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While stock indices are hitting multi-month or all-time highs, the cryptocurrency market is treading
water at a one-month high, having lost 0.45% in the last 24 hours. Given the positive dynamics of
global equity markets and the nature of recent gains, the latest pullback looks like a consolidation of
forces before a possible further spurt. Additionally, the strengthening dollar has also put pressure on
cryptocurrencies.
Bitcoin has so far failed to consolidate above the 200-day moving average. In the morning, the price
pulled back on stop orders in low liquidity to $62.7K but then added $1K at the time of writing. This
has become a typical deviation from the extremes in recent days. For the past week, Bitcoin has been
forming a sideways channel just under $2K wide with a slight upward bias that now runs through
$62.7K-$64.5K. A move beyond it could launch a medium-term trend after the current lull.
News Background
Bitfinex believes Bitcoin’s September rally was mainly driven by activity in derivatives trading amid
weak demand in the spot market. BTC needs to consolidate above the August high of $65,200 to
continue its rally.
Bitcoin is mistakenly regarded as a risky asset because of its frequent correlation with the stock
market, said Robert Mitchnik, head of BlackRock’s crypto division. In his view, BTC is a ‘scarce,
global, decentralised asset that is not tied to any particular country and lacks traditional counterparty
risk.’
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The US SEC has delayed a decision on Nasdaq’s proposal to list options on spot Ethereum-ETFs
from BlackRock and Bitwise until 10 November.
The SEC entered into a settlement agreement with TrueCoin and TrustToken. The companies will pay
a $500,000 fine for illegally offering investment contracts in the form of TrueUSD (TUSD) stablecoin.
The court sentenced former Alameda Research head Caroline Ellison to two years in prison and
forfeiture of $11bn on fraud and money laundering charges.
BNY Mellon, the world’s largest custodian bank, plans to enter the custodial market for bitcoin and
Ethereum-based spot ETFs. Bloomberg noted that such a move would threaten Coinbase’s dominant
position.
The team of trading Telegram bot Banana Gun confirmed its intention to reimburse 11 affected users
for the $3 million stolen in the hack on 19 September.
