Bitcoin traded below US$26,000 in Asia on Monday afternoon, while Ether and all other top 10 non-stablecoin cryptocurrencies posted losses. The market is also under pressure following news that the collapsed FTX crypto exchange may soon liquidate its US$3.4 billion worth of crypto holdings. Asian shares traded mixed. US futures rose ahead of the release of key inflation data, while European stocks rose ahead of the central bank’s policy meeting later this week.
See related article: FTX sues LayerZero Labs to recover US$21 million
All top 10 cryptos are falling
Bitcoin fell 0.15% to US$25,811 in the 24 hours to 16:00 in Hong Kong, bringing its weekly losses to 0.56%, according to CoinMarketCap data.
“Currently, Bitcoin’s price is trading without a clear direction amid cautious market sentiment. Bitcoin, which leads the entire crypto market, will be affected by various technical factors in the coming week in the absence of news and legal decisions related to the cryptocurrency market,” said Rania Gule, market analyst at multi-asset brokerage firm XS. com said. Forkast.
“I believe that the crucial support level of US$24,995 will determine whether Bitcoin’s price goes up or down. A clear and strong break below this level would send Bitcoin to the all-important support level at US$24,000, which would signal a clear bearish trend reversal. In the worst case scenario, the selling momentum in this case could push the price down to around US$21,915, which is roughly the mid-March level,” said Gule.
Ether, the native token of the Ethereum blockchain, has fallen 0.78% to US$1,611 in the past 24 hours and is down 1.63% in the past seven days.
Ethereum founder Vitalik Buterin’s account on X, formerly Twitter, was hacked on Sunday, leading to losses for some of Buterin’s followers, according to blockchain researcher ZachXBT. Hackers posted links to a scam non-fungible token (NFT) project on Buterin’s Twitter page, advising users to link their crypto wallets before withdrawing the funds.
“Ethereum price indicators continue to show signs of the ongoing bearish trend, supported by a break of the trendline that took the price below the critical support level of US$1,687. This paves the way for a potential 27% drop in ETH price .I believe the price could reach a significant level of US$1,200, with intermediate support at US$1,366,” Gule of XS.com pointed out.
The crypto market is also facing downward pressure from the latest FTX news. The collapsed cryptocurrency exchange is likely to receive approval to begin liquidating its crypto holdings on September 13, according to a tweet from blockchain analysts Whale Alert. After filing for bankruptcy in November last year, the exchange still holds an estimated US$3.4 billion in crypto assets.
John Stefanidis, CEO of the blockchain infrastructure foundation Balthazar DAO, said: “The recent drop in value of altcoins can be attributed to the expected authorization of the liquidation of assets held by FTX. With a portfolio worth billions in crypto -currency assets, a potential liquidation could significantly affect market values, particularly Solana, Aptos, Dogecoin, Matic, TON and XRP.
Toncoin was the biggest loser, falling 3.38% to US$1.70 in the last 24 hours and losing 9.96% in the last seven days.
Ripple’s XRP was the second biggest loser, down 2.91% to US$0.4857 on the day and 3.54% on the week. The US Securities and Exchange Commission (SEC) filed last Friday to force the court of the Southern District of New York to appeal its ruling on the agency’s lawsuit against Ripple Labs. The SEC asked the court to review its previous ruling by Judge Analisa Torres that caused “knotty legal problems,” according to the filing. In July, a summary judgment by Judge Torres ruled that Ripple’s XRP sales to institutional investors violated securities laws, but sales on public exchanges to retail investors did not.
Ripple Labs also announced that it will acquire Nevada-based crypto-infrastructure startup Fortress Trust, which will give Ripple a regulatory license in the state of Nevada.
Elsewhere, the Group of 20 (G20) meeting under India’s presidency said at the weekend that member countries will work together to develop a coordinated global regulatory framework for cryptocurrencies, cross-border cooperation and information sharing.
“Crypto-assets and how regulation can be put in place – we have contributed to a road map so [that] over the next month, progress can be made in that area,” Kristalina Georgieva, managing director of the International Monetary Fund said on Sunday at the conclusion of the G20 leaders’ summit in India’s capital New Delhi.
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Congratulations to India on a successful #G20 presidency. The theme of “one earth, one family, one future” resonated with world leaders, who reached an important consensus on ways to address the global challenges we face. My takeaways from 🇮🇳’s successful @g20org summit.
— Kristalina Georgieva (@KGeorgieva) September 10, 2023
However, one of the main challenges facing the cryptocurrency industry globally is the delay in implementing these recommendations at the national level, according to Caroline Bowler, CEO of Australian digital asset exchange BTC Markets.
“While international organizations establish the framework for a harmonized regulatory environment, it is essential that governments and regulatory authorities act promptly to translate these guidelines into enforceable regulations. Delayed implementation could hinder the industry’s growth, create uncertainty and potentially leave investors and consumers exposed to risk,” Bowler said in an emailed statement Monday.
Total crypto market cap fell 0.54% to US$1.03 trillion, while market volume rose 36.82% to US$20.63 billion.
Total NFT sales volume, transactions decrease
The Forkast 500 NFT index fell 0.85% to 2,119 in the 24 hours to 19:00 in Hong Kong, up 3.53% on the week, with Forkast’s Ethereum, Solana and Polygon indices also falling has.
Total NFT sales fell 4.08% to US$8,757,370 in the last 24 hours, according to CryptoSlam data. NFT trades fell by more than 10% at the same time.
“As we enter the slowest months of the year, one has to wonder how low we can really go, and if we can go down to February 2021 levels where we saw $35-50 million in sales,” said Yehudah Petscher, NFT – strategist. at Forkast Labs.
Among blockchains, Ethereum topped the rankings by sales volume, rising 2.67% to US$4.7 million. Mythos and Polygon networks ranked second and third, respectively.
Among the collections, Mythos-based DMarket topped the rankings, although its sales volume fell by 7.76% to US$1,012,238 in the past 24 hours.
“Football NFTs were hot with the NFL season kicking off. Both DraftKings with their fantasy football NFTs and NFL All Day with their pure collectibles have seen millions in sales over the past seven days,” said Petscher.
Sales from Polygon-based DraftKings rose 45.96% to US$579,756, ranking it the third largest collection by sales volume.
Asian stocks mixed; US futures, European stocks win
Major Asian stock markets traded mixed on Monday as investors await the latest US inflation data due for release later this week. China’s Shanghai Composite and Shenzhen Component Index, as well as South Korea’s Kospi, gained. Japan’s Nikkei 225 and Hong Kong’s Hang Seng index fell in late trading hours.
The US Consumer Price Index (CPI) for August will be released on Wednesday. Analysts expect the inflation gauge to rise 3.8% on a year-over-year basis, from 3.2% in July, according to the Federal Reserve Bank of Cleveland.
A recent rise in oil prices and stronger-than-expected growth in US services recorded last week fueled concerns about inflation in the US, Reuters reports.
The CPI forecast of 3.8% is still higher than the Federal Reserve’s long-term goal of bringing annual inflation below 2%. The Fed last raised interest rates in July to between 5.25% and 5.5%, the highest since early 2001.
US stock futures strengthened at 8pm in Hong Kong on Monday. The Dow Jones Industrial Average futures, the S&P 500 futures and the Nasdaq 100 futures were all in the green.
India’s benchmark index Sensex rose 0.79% in late trading hours on Monday.
European stock markets – the benchmark STOXX 600 and Germany’s DAX 40 – rose on Monday. Investors await the outcome of the European Central Bank’s (ECB) policy meeting on Thursday, which is expected to indicate whether the central bank will raise interest rates further. ECB policymakers are divided over whether to raise rates again, amid slowing economic activity and persistent inflation that remains above the 2% target.
“If you can’t get yourself to step in September, the case won’t be stronger in October, as economic data is likely to worsen, and September inflation will come in quite a bit lower,” said UBS chief economist Reinhard Cluse, who A 25 expected. basis point increase, according to a Reuters report.
(updates with stock section.)
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