Bitcoin Remains Under $60,000 Mark as Mixed Trends Persist in Altcoin Prices
As of September 4, Bitcoin continues to trade significantly below the critical $60,000 mark, recently observed at approximately $56,560 on global exchanges, equivalent to around Rs. 47.4 lakh, according to CoinMarketCap. On Indian exchanges, Bitcoin’s price stood at about $60,713 (roughly Rs. 50.9 lakh). The cryptocurrency experienced a price decline of approximately four percent on this day, reaching an intraday low of $55,680 (around Rs. 46.7 lakh) after breaching the key support level of $57,000 (approx. Rs. 47.8 lakh). This bearish trend in the cryptocurrency market appears to be fueled by concerns surrounding potential interest rate hikes in Japan and notable decreases in big tech stocks, particularly Nvidia, which witnessed its largest single-day drop at the Nasdaq.
Ether, too, faced a decline, with losses exceeding 5.76 percent on Indian platforms, while it traded at $2,375 (approximately Rs. 1.99 lakh) on international exchanges, reflecting a 5.68 percent decrease. The ZebPay trade desk highlighted that Ethereum had endured considerable difficulties in August, characterized by weak demand for exchange-traded funds (ETFs) and mounting technical issues that resulted in the asset’s most substantial monthly fall in over two years. The last comparable drop occurred in June 2022, attributed to a broader market downturn following the collapse of the Terra ecosystem. Presently, Ethereum appears to be trading sideways at lower volumes, with robust support observed around $2,400 (approx. Rs. 2.01 lakh) and substantial resistance at $2,850 (around Rs. 2.39 lakh).
Other cryptocurrencies, including USD Coin, Cardano, Avalanche, Shiba Inu, Chainlink, and Bitcoin Cash, have also experienced declines alongside BTC and ETH. Meanwhile, Polkadot, Leo, Near Protocol, Polygon, Monero, Stellar, Cronos, and Cosmos have reported losses as well.
Shivam Thakral, CEO of BuyUcoin, indicated that the increasing convergence between traditional and cryptocurrency markets is becoming increasingly apparent, particularly as trading sentiments adjust in accordance with anticipated decisions by the Federal Reserve regarding interest rates. The prevailing bearish atmosphere in the cryptocurrency sector is exacerbated by data from the ISM Manufacturing PMI, which continues to indicate economic contraction.
Overall, the cryptocurrency market capitalization has decreased by 4.22 percent within a 24-hour window, settling at approximately $1.99 trillion (roughly Rs. 1,67,06,964 crore) according to CoinMarketCap. Contrarily, some cryptocurrencies including Tether, Binance Coin, Ripple, Tron, Litecoin, and Bitcoin SV managed to record gains on Wednesday.
The research team at CoinDCX noted that the cryptocurrency market has suffered significant losses paralleling a sharper decline in global markets. While Bitcoin seems to have reached a temporary bottom, having effectively addressed a CME gap, gathered liquidity, and purged open interest, future movements will likely be influenced by broader global market trends and forthcoming macroeconomic events in the United States.
It is essential to recognize that cryptocurrencies remain unregulated digital assets and are not considered legal tender. Investors should exercise caution and conduct thorough research, as the information presented herein should not be interpreted as financial or trading advice.
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