Top cryptos retreat as Bitcoin and Ether decline, with Toncoin topping losers
Monday morning in Asia, the price of bitcoin decreased to under US$26,300. Ether decreased as well and continued to trade below US$1,600. The top 10 non-stablecoin cryptocurrencies overall were all declining. With a loss of more than 4% during the last day, toncoin was the biggest loser. Cryptocurrencies have decreased in value as a result of the U.S. Federal Reserve’s hawkish stance on policy during its September meeting. Despite pausing interest rate increases, the Fed indicated that one more would happen by the end of the year and that rates would stay higher than expected. During early morning trading in Asia, U.S. stock futures were higher. For a week of losses, all three main U.S. indices closed lower on Friday.
Bitcoin below US$26,300 with more declines expected
According to data from CoinMarketCap, the price of one bitcoin declined 1.22% in the previous 24 hours to US$26,252.57 as of 7:40 a.m. in Hong Kong. The biggest cryptocurrency in the world reported a weekly loss of 0.91%. Over the weekend, it was trading around US$26,500, but early on Monday morning, the support line broke.
According to Markus Thielen, head of research and strategy at digital asset service platform Matrixport, “the trend is down overall and remains bearish.”
More decline is anticipated after Bitcoin fails to surpass its 50-day moving average of US$26,876.
“The market might try another break lower if Bitcoin trades below US$26,000,” Thielen warned. “October tends to be a seasonally bullish month for Bitcoin,” he continued, “but we would stay cautious without a break above its 50d M.A.”
Ether fell 0.86% to US$1,579.12 and finished the week 2.52% worse. For the first time since Thursday, the second-largest cryptocurrency in the world dropped below the US$1,600 support barrier.
According to Thielen, “We are mostly concerned about Ethereum as weak fundamentals combined with a lack of hype around the EIP-4844 upgrade (which is expected to arrive sometime in Q4 2023) could make the blockchain gradually obsolete.”
“Ethereum’s failure to rally above US$1,650 is of the utmost concern as a break lower could have major implications for the altcoin sentiment,” Thielen continued.
The Ethereum Cancun Upgrade, also known as EIP-4844, is a suggested Ethereum upgrade that attempts to increase the efficiency and speed of the Ethereum network.
According to blockchain analytics company Santiment, the average charge on the Ethereum blockchain decreased to about $1.15 per transaction on Saturday, the lowest level since December 2022.
“Historically, utility increases when $ETH’s cost of circulation decreases. “Recovering market cap levels may follow from the increased utility,” Sentiment noted in a Saturday Twitter post.
The top 10 non-stablecoin cryptocurrencies all experienced losses over the previous day. With a weekly loss of 3.98% and a drop of 4.22% to US$2.20, toncoin was the worst performer. However, the Open Network’s native token (TON) nonetheless had a monthly increase of more than 50%.
While trading volume grew marginally by 8.42% to US$17.64 billion over the previous day, the overall market capitalization of cryptocurrencies fell by 1.0% to US$1.04 trillion.
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