Market Overview
The cryptocurrency market started the week mixed as global investment market capitalization fell by 1.2% and now stands at $2.27 trillion. However, it is still 3% up from a week ago, though from those figures it appears to be down slightly today. The slight pullback seems the result of traders locking in profits ahead of major releases that include the jobs data and the Fed Chief’s speech.
Bitcoin Performance
Bitcoin, the most popular digital currency, was down 2.6% on Monday and is currently hovering at $ 64,000. This pullback comes as BTC is finding itself for the first time in months at the upper edge of a descending triangular pattern. Still, as some observers believe there may be a more carnal reaction than rational, not least given recent developments where Bitcoin has already shot above key points such as prior tops and the 200 SMA to indicate a buy signal.
Bitcoin has had its best September month since at least 2012, up more than 11% in the month thus far; September is typically one of the worst months for Bitcoin. At the same time, the altcoin market is up by more than 20% as a result of eased financial conditions across the world with the Federal Reserve, ECB, and PBC lowering interest rates.
Bitcoin and other leading cryptocurrencies continued their weekly gains; BTC finally closed at $66,500 last week, the highest close since July 26. There was also positive sentiment in trading days up to five in regard to the U.S. spot Bitcoin ETFs.
Key Insights
Normal Correction or New Trend?
10x Research believes that Bitcoin is in overbought territory and the current dip is a normal correction. In the past, there had been monthly dips in Bitcoins after the initial half of June beginning with June’s first week.
Analyzing the comments of DecenTrader, the portal moves that if the BTC decides to maintain its support level around $63,000, it may become possible to pursue a fresh bullish trendset. Currently, the long-to-short ratio remains significantly lower than earlier, and historically, such a situation has attracted higher price increases in BTC.
Optimistic Outlook for Bitcoin and Ethereum
Michaël van de Poppe of MN Trading believes that the current environment is suitably friendly to Bitcoin in light of a diminishing U.S. labor market along with the gradual erosion of trust in so-called “established financial systems.” He believes that BTC will reach $192, 000 by the end of the year and $600,000 by mid-2025.
Based on the Ethereum side, FalconX expects by sometime mid-2025, the Federal Reserve’s base rate to be lower than Ethereum’s rate of return, boosting the second-largest cryptocurrency by market cap’s price.
Concerns from Regulators
But not all outlooks are positive in this sense of the word. The Dutch Financial Markets Authority has recently posted information for consumers stating that cryptocurrency investments might be connected with high risks including manipulation of the cryptocurrency prices and pump-and-dump schemes that might lead to vital financial losses.
Also, Read @ Russian Firms Authorized to Use Crypto
