Market situation
The cryptocurrency market fell 0.2% in 24 hours to $2.12 trillion, but saw fresh declines in intraday U.S. trading and rebounded in low-volume buying in Asian trading on Friday morning. The sentiment index fell to 32 (fear), the lowest level in a month.
Since the beginning of the week, Bitcoin's intraday momentum has been dominated by declines during US trading. The intensification of the sell-off was clearly visible on Wednesday and Thursday, with peak-to-trough losses exceeding 3%. The first cryptocurrency dipped below $59,000 but has recovered to $60,500 at the time of writing. The momentum from the previous day's decline pushed BTCUSD below the 50-day moving average, and the price is about to rise again following a recovery in the morning.
Ethereum returned to $2,400 on Friday to start the week. The rally seen last weekend did not develop, and the failure to break out of the local lows is another sign of the long-term support line, the 200-week moving average, from which week 9 is unlikely to break out. Not yet. . Ethereum only went down in 2020.
news background
According to QCP Capital, the increase in perpetual contract funding rates shows that the crypto market is vulnerable to corrections. In the medium to long term, experts remain bullish and recommend betting on the nature of the short-term correction and applying accumulation strategies.
OXT Research noted that approximately 7,000 ETH worth $16.7 million seized from the organizers of the PlusToken cryptocurrency pyramid scheme was transferred to the exchange. This could mean that all remaining approximately 542,000 ETH worth $1.3 billion will be sold. The majority of PlusToken's Bitcoins (approximately $1.3 billion) were sold between 2019 and 2020.
SEC Commissioner Gary Gensler said that in the future, Bitcoin and other cryptocurrencies will be seen as stores of value rather than widely used payment methods. He cited Copernicus Gresham's 19th century law that “bad money drives out good money,'' and that countries prefer to have only one type of currency.
Nobuaki Kobayashi, the trustee of the bankrupt cryptocurrency exchange Mt.Gox, said in an official letter that the deadline to compensate affected creditors will be extended by another year to October 31, 2025.
