Bitcoin and other top- 10 cryptos down amid wall street sell-off.-Friday morning in Asia, Bitcoin fell and now trades below the US$27,000 support barrier. Ether also lost ground and, for the first time in the previous week, lost control of the US$1,600 level. The top 10 non-stablecoin cryptocurrencies all experienced losses over the previous day. Solana was the biggest loser, falling more than 3%. As investors processed aggressive U.S. Fed comments on monetary policy, there was a decrease in global equity markets on Thursday, which coincided with a decline in cryptocurrency prices. Following losses of more than 1.0% on Thursday for all three of the major U.S. indexes, U.S. stock futures were trading flat during the Asian trading session.

Coins fall as U.S. bond yields rise.

According to data from CoinMarketCap, the price of bitcoin dropped 2.10% during the last 24 hours to US$26,580.90 as of 7:30 a.m. in Hong Kong. On Thursday night, the value of the biggest cryptocurrency in the world dropped to US$26,389.30, the lowest point in a week.

The U.S. Federal Reserve forecast one more rate increase by the end of 2023 after making the anticipated decision to leave interest rates constant in September. Although it revised its forecast for the rate of interest rate decrease in 2024, Fed members’ remarks were “more hawkish” than analysts had anticipated.

Standard 10-year U.S. Treasury yields increased to a 16-year high of 4.49% on Thursday following the Fed meeting on Wednesday.

“U.S. equity and rates markets have broken some very key levels on the back of this (Fed projection), and reflexivity can take over with the bearish thesis from here,” noted digital asset trading company QCP Capital in a Thursday Telegram market update.

Despite having a smaller beta compared to other severely stretched macro markets like the NASDAQ, the decline in equity markets and rising government yields “could seep into crypto markets and take BTC lower with it,” according to QCP Capital.

The several spot Bitcoin exchange-traded fund (ETF) applications being considered in the United States, despite macro challenges, can help Bitcoin, according to Markus Thielen, head of research and strategy at digital asset service platform Matrixport.

The price of Bitcoin may change immediately and go up by 20% in an instant if the SEC authorizes a Bitcoin ETF, which has a 70% chance of happening in the next six months. Therefore, maintaining upside exposure to such an occurrence is crucial, Thielen said in a comment received via email.

The price of ether decreased 2.35% to US$1,585.53 and was down 2.66% for the week. For the first time since last Thursday, the second-largest cryptocurrency in the world dropped below the US$1,600 support barrier.

The top 10 non-stablecoin cryptocurrencies all experienced losses over the previous day. The biggest loser was Solana’s SOL, which dropped 3.73% to US$19.54. It nevertheless recorded a weekly gain of 3.5%.

According to a statement released on Thursday by Mt. Gox trustees, the defunct Tokyo-based cryptocurrency exchange Mt. Gox has extended the deadline for paying back its customers from October 2023 to October 2024.

Mt. Gox, the biggest cryptocurrency exchange in the world at the time, had over 850,000 Bitcoins stolen from it in 2014. These coins are now valued at approximately US$22.57 billion. About 142,000 Bitcoins are now held by the cryptocurrency exchange. Analysts predict that the wider Bitcoin market will experience selling pressure as a result of the consumers of Mt. Gox receiving their lost Bitcoin back.

According to Justin d’Anethan, head of Asia-Pacific business development at Belgian cryptocurrency market maker Keyrock, “(Mt. Gox’s delay) alleviates—at least for now—a wave of selling that many traders must have been preparing for and that can now be ignored.”

Additionally, less than a year after announcing it would phase out the practice, Tether Holdings, the company that creates the USDT stablecoin, increased the scope of its USDT loan services during the most recent financial quarter.

“Most investors and holders would see that as additional risk, as it means more assets will be used by third parties and if market conditions were to turn for the worse, could pose liquidity issues,” d’Anethan said.

At 07:30 a.m. in Hong Kong, USDT was trading at US$1.0001, just above its 1:1 peg to the greenback. According to d’Anethan, the valuation indicates that “investors are not concerned and actually prefer it to most other stablecoin options.”

While trade volume increased 158.64% to US$72.41 billion in the last day, the overall market value of cryptocurrencies fell 1.67% to US$1.05 trillion.

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