Market Volatility Roils Investors: Bitcoin Dips Below $60,000, XRP Takes a Hit, Eyes on Jobs DataAsset prices, from Bitcoin (BTC) to stocks and gold, struggled to hold steady in early trading on Thursday. Investors were unsettled by heightened tensions in the Middle East and were closely watching for the release of the September jobs report on Friday
Market Volatility Roils Investors: Bitcoin Dips Below $60,000, XRP Takes a Hit, Eyes on Jobs Data
Asset prices, from Bitcoin (BTC) to stocks and gold, struggled to hold steady in early trading on Thursday. Investors were unsettled by heightened tensions in the Middle East and were closely watching for the release of the September jobs report on Friday. The market was worried that any new sign of weakness in the labor market could prompt the Federal Reserve to cut rates aggressively again, despite widespread expectations of only a 25 basis point rate cut in November.
According to the CME FedWatch Tool, there is a 68% probability of a 25 basis point rate cut at the next Federal Open Market Committee meeting.
Bitcoin, after a bounce overnight to $61,500, saw bears target the $60,000 support level once again, while bulls fought hard to defend the bottom line. Data provided by TradingView showed Bitcoin down 1.44% on the day, falling to $2.13 trillion.
"The crypto market lost another 1.44% of its capitalization in 24 hours, reaching $2.13 trillion," said Alex Kupcsikevich, senior market analyst at FxPro. "The pressure comes from the medium-term impact of the Middle East conflict and short-term profit-taking ahead of the US jobs report release, which caused a persistent rise in the dollar and a decline in risky assets. The sentiment index returned to the fear zone, dropping to 37, a two-week low."
Kupcsikevich added: "Bitcoin found support as it fell towards the 50-day moving average and the $60,000 area." "Fluctuations within the $60,000 to $63,600 range over the next two days could be misleading market noise as the market awaits new information."
XRP has been more volatile than most coins in recent days. The community sentiment initially surged, and the coin price rose after Bitwise announced it had filed the first spot XRP exchange-traded fund (ETF) application with the Securities and Exchange Commission (SEC). However, the mood quickly soured when the SEC announced it would appeal its recent ruling in the case against XRP issuer Ripple.
"XRP has lost about 20% in four days, failing to find support," said Kupcsikevich. "Despite the news of the ETF application, the coin fell from the top of the range to the bottom. On Wednesday, it broke through the 50-day and 200-day moving averages in one move, pulling back below $0.53. Breaking through the range and confirming below $0.50 could trigger a fall to $0.40."
Overall, the crypto market is having a rough start to October. Some community members are sharing memes, renaming October from Uptober to Rektober, as holders see their portfolio values decline.
"The spot buying behavior of BTC has stalled significantly, along with the outflow of BTC ETFs, which is one of the key reasons behind the current decline in Bitcoin prices," said Jag Kooner, head of derivatives at Bitfinex, in a report. He added: "While we may see an 8-10% drop in the first half of October, we still expect it to be neutral to positive by the end of the month, depending on when the uncertainty over geopolitical conditions eases."
"The correlation of BTC prices with equities has only increased in the past four months," said Kooner. "We are seeing that continue, with BTC behaving like a tail-risk asset." "Meanwhile, correlation with safe-haven assets such as gold may be waning, especially as global economic and geopolitical conditions deteriorate."
As for near-term expectations, market analyst Justin Bennett said he "expects $59,000 to be a demand zone for BTC, but the long liquidation price is $57,000, so we may see Bitcoin absorb that liquidity before a bounce."
At present, Bitcoin is trading at $60,103, down 2.07% on the 24-hour chart.
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