Crypto market undergoes correction

Market Picture

The crypto market is developing a correction at a moderate pace. It has lost 1.3% more over the last day to $2.31 trillion, down around 3% from the recent peak. At the same time, the sentiment of greed persists. The corresponding index is in the 70-73 range for the eighth day.

Ethereum continues to lose market share to Bitcoin and other altcoins. As a result, BTC's share of all cryptocurrency capitalisation has risen to 57.3%, the highest since April 2021.

But that doesn't necessarily mean an upward trend for the top cryptocurrency, which has pulled back below $67K, losing 1% in the last day and nearly 4% from its peak on 21 October. The price is now close to a local support level at $66.8K. A break of this support will open the way for a deeper correction to $65.5K, near the 61.8% retracement level from the last rally and the late September top.

News Background

Options traders have increased bets on Bitcoin to rise above $80K following the US election. Donald Trump, who is seen as more friendly to cryptocurrencies, has an estimated 63.5% chance of winning.

QCP Capital sees a high probability that Ethereum will break through the $2800 resistance level and reach $3000 as the US election is just two weeks away.

According to media reports, Indian authorities are considering significantly restricting or outright banning private cryptocurrencies, as unlike CBDC, they do not meet the requirements of financial inclusion and security.

German-listed mining company Northern Data is considering selling its Bitcoin mining division, Peak Mining, to focus on AI.

The Bitcoin miner, which mined its first coins on 13 January 2009, has sold a total of $9.6 million worth of BTC, according to Arkham Intelligence. That old whale still has 1,077 BTC worth $72.4 million.

By the FxPro Analyst Team