The broader crypto market sentiments have been relatively neutral since Bitcoin’s rally has slowed down, but the macroeconomic risks remain.
The crypto market, even after a minor correction in token prices, has not dipped steeply. Crypto market sentiments are fairly stable, with BTC trading over $62,000. The main reason for this latest dip could be the stiff resistance Bitcoin faced at $64,000 and the subsequent failure of a price breakout.
In the near term, the current price range for BTC may emerge as the new norm. A few reasons may strengthen this theory. First, geopolitical risks could still be a hindrance to a full-blown rally. Second, the improvement in economic conditions in the US might influence the Fed to slow down on interest rate cuts. The latter would have been beneficial with the likely injection of liquidity into the crypto market.
A report by a leading crypto exchange has also mentioned how the recent correction in BTC and other token prices is a healthy sign.
Its report stated, “As Bitcoin experienced its first consecutive series of four red days since early August, the market saw a healthy realignment, with OI decreasing from overheated levels above $35 billion to $31.8 billion. This reduction in OI suggests that market conditions are relatively stabilized, with the risk of abrupt price movements now lower. “
BTC/USD 1D price chart
Bitcoin is currently trading at around $62,600 on October 8, 2024, with BTC/USD trading lower by a margin of around 2% in the last 24 hours. Bitcoin’s market cap was trading at around $1.2 trillion in the last 24 hours.
BTC/USD is trading higher than its 20-day EMA (around 61,700), as BTC’s 24-hour volume was at approximately $33 billion. The global crypto market cap decreased by around 2%, trading above $2.1 trillion. BTC’s year-to-date returns are above 48%.
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