The crypto market has been experiencing a six-day downtrend, with Bitcoin losing 1.5% within 24 hours on Thursday and falling below $26,7501. This downturn contrasts with the recent advancements in risk-sensitive assets and diverges from gains seen in stock market indices like the Dow Jones and S&P 5001.
The late-September rally had sparked hopes of a bullish surge towards the $30,000 mark, but this enthusiasm has faded due to potential Middle East conflicts or a general lack of interest in Bitcoin1. The upcoming U.S. CPI inflation data could either push Bitcoin above $27,000 or further cement its position in the $26,000 range1. Despite expectations that the Federal Reserve won’t raise interest rates again to tackle inflation, cryptocurrencies remain unaffected1.
Other digital currencies such as Ether, Cardano, Polygon, Dogecoin, and Shiba Inu are also posting losses2. Interestingly, Bitcoin typically rises 1% on Friday the 13th and further surges by an average of 14% and 66% over the next one and three months respectively1. This is in stark contrast with the bearish performance of the S&P 500 on this date, according to data from Matrixport1.
However, Markus Thielen warns of a potential crypto market correction due to challenges in Ethereum’s revenue generation caused by limited DeFi activity and decreased NFT minting1. He points out that Ether’s price is nearing its September lows with a possible significant liquidation of leveraged positions if key support is breached1. This could lead to a deeper slide toward $1,430 with repercussions across the market1.
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