Bitcoin (BTC) and other cryptocurrencies suffered a setback, registering a substantial drop late on October 21 and early on October 22. BTC dropped over 2% over the past 24 hours, while Ethereum (ETH) dropped further and is currently down by 3.54% over the past 24 hours, losing the $2,700 price level.
Other major cryptocurrencies, including Solana (SOL), Dogecoin (DOGE), Toncoin (TON), and Polkadot (DOT), also registered noticeable drops. As a result of these declines, the global crypto market cap fell by almost 2% to $2.34 trillion. However, the total market volume registered a jump of 29% to $85.17 billion.
ChangeNOW CMO Pauline Shangett stated about the performance of BTC and ETH,
“The latest drop in Bitcoin and Ethereum underscores the volatility that continues to characterize the crypto market. While BTC's 2% drop is significant, Ethereum’s sharper 3.54% decline below $2,700 raises further concerns about market stability.”
CME Bitcoin Futures Open Interest Sets New ATH
Open interest on Bitcoin futures surged to a new all-time high of $12.26 billion, up over 36% over the past two weeks, and almost 3.5% higher than its previous all-time high. The surge in open interest is a significant increase from its previous all-time high registered in summer and is the highest recorded level since April 1, when the CME OI stood at $11.84 billion. The surge in open interest in CME futures indicates that institutional interest is surging, and institutions are taking stronger positions, anticipating continued volatility or a jump in the price of BTC.
Open interest refers to the number of outstanding futures contracts that have yet to be settled. A record-high OI indicates greater participation and active trading or holding of positions in Bitcoin futures.
The Bitcoin (BTC) hashrate measure has also continued to grow over the past few months. This metric is crucial to gauge the adoption and security level of the asset. Market watchers are wondering what will keep the BTC hashrate sustainable. Since the halving event, BTC mining difficulty has seen a substantial jump. However, many believe the Bitcoin hashrate will surpass its current all-time high due to three reasons:
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The prospect of BTC’s profitability
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Natural selection among BTC miners
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Bitcoin hashrate and service diversification.
Argentina Drafts New Crypto Regulations
Argentina has stated it is drafting new crypto regulations to protect users and stakeholders better. The Argentine securities regulator announced the news, which recently also announced a public consultation of a draft to regulate virtual asset service providers (VASPs) operating in the country. The new regulations will impose new compliance requirements on these institutions.
If approved, the new regulations would require crypto companies to disclose all agreements with customers and third parties. They also aim to prevent money laundering and terrorism financing by establishing strict policies and cybersecurity norms. The new framework is a follow-up to the VASP registry launched earlier this year. CNV President Robert Silva stated that the resolution aims to regulate according to the principles of the law but without hindering innovation.
However, the crypto industry is cautious and skeptical about the new draft. Those within the industry stated that while regulations are needed, they should be built to allow companies to grow. Carlos Peralta, the head of public affairs at Bitso Argentina, stated,
“At Bitso, we deeply value the review of the requirements for registration in the VASP registry, which is done through public consultation and will contribute to financial inclusion and the construction of a faster and more efficient financial infrastructure.”
Juan Pablo Fridenberg, director at Lemon, one of Argentina’s most popular exchanges, stated,
“Authorities know that regulation must be intelligent and gradual. As international organizations have warned, a framework that distorts, suffocates, or makes the activity of VASPs too expensive will encourage users to move to other, deregulated, or cross-border areas.”
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) is down over 2% after briefly pushing above $69,000 on Monday. The world’s largest cryptocurrency dropped to a low of $66,700 before recovering and is currently trading around the $67,650 level. BTC and the crypto market’s drop after hitting a 3-month high came as a surprise for many who were expecting the price to test $70,000 given its recent bullish showing. Several factors have contributed to the recent downturn. With just two weeks left for the US elections, concerns have grown. Given his pro-crypto stance, a Trump victory is seen as favorable to the crypto ecosystem. Vice President Kamala Harris has also promised to support crypto regulation.
However, with the race now deemed too close to call, anxious investors are pulling back from risky assets such as BTC and parking their funds into safer assets such as gold and the US Dollar. Secondly, the supposed decision of the Federal Reserve to cut interest rates slower than expected is also weighing on the market. This has strengthened the US dollar and pushed up Treasury yields, hurting assets such as BTC. Gold reaching an all-time high has also put crypto under pressure, with silver also surging to its highest price in almost three years.
Looking at the Bitcoin (BTC) price chart, we can see that BTC started the current week in red despite finishing the previous week positively. BTC’s surge on the previous Monday pushed it above $65,000 and the 20 and 200-day SMAs as it settled just shy of $66,000 at $65,992. Despite facing significant volatility on Tuesday, BTC registered an increase of 1.53% and moved to $67,000. Buyers attempted to push above $68,000 on Wednesday as BTC rose to a day high of $68,379 before losing momentum and eventually falling back to $67,519, an increase of 0.77%. A marginal drop on Thursday pushed BTC down to $67,302.
Source: TradingView
However, it quickly recovered and registered an increase of 1.63% on Friday to push above $68,000 and settle at $68,398. With sellers active at this level, momentum waned over the weekend, and BTC registered another marginal drop on Saturday before rising by 0.72% on Sunday and settling at $68,773. BTC started the current week strongly as buyers pushed it to a day high of $69,401. However, once again, buyers lost momentum after coming across significant resistance, allowing sellers to take over. BTC eventually fell by 2.13% and settled at $67,307. Sellers attempted to drag BTC below $67,000 during the current session, but the price has recovered after dropping to a low of $66,523 and is currently trading at $67,640.
If buyers can retain control of the current session, BTC will likely look to reclaim $68,000 once again. On the other hand, sellers will look to drive BTC back below $67,000. In such a scenario, BTC will likely end up at $65,000.
Ethereum (ETH) Price Analysis
Ethereum (ETH) continued to drop for the second day in a row after sellers dragged the price below $2,700 on Monday. ETH has gotten off to a bearish start to the current week, as sellers now look to push it below $2,600. ETH’s price action was mixed last week as momentum waned after a substantial jump of 6.54% last Monday, which saw the altcoin climb above the 20 and 50-day SMAs and the $2,600 price level. However, the price declined 0.85% on Tuesday after facing significant volatility. Wednesday and Thursday saw volatility persist as ETH could only register marginal increases and decreases in price. However, it stayed above $2,600, indicating sellers were getting exhausted at this level.
Source: TradingView
Friday saw buying activity pick up as ETH registered an increase of 1.41% and settled at $2,641, and a marginal rise on Saturday took ETH to $2,647. Bullish sentiment picked up once again on Sunday as ETH went past the crucial $2,700 level and settled at $2,746. However, buyers lost momentum on Monday after a move to $2,800 failed to materialize. As a result, sellers took over and pushed ETH down by almost 3%, as it fell back below $2,700 and settled at $2,666. The current session sees ETH remain in the red as sellers look to drive the price below $2,600. As we can see in the price chart, ETH has recovered from a low of $2,615 during the ongoing session but remains down by 0.53% and trading at $2,653.
Sellers will look to drag ETH below $2,600. Such a move would indicate they have gained the upper hand. However, buyers will look to regain control and push ETH back above $2,700.
Solana (SOL) Price Analysis
Solana (SOL) is looking to push above $170 after failing to do so on Monday after its ascent was abruptly halted thanks to intense selling pressure. SOL’s price action was quite mixed during the past week, starting with a significant jump of 6.63% on Monday, which saw it push above the 200-day SMA and settle at $157. However, it fell back in the red on Tuesday as sellers sought to push it back below the 200-day SMA. By Thursday, they had succeeded as SOL fell to a low of $147 before recovering and settling at $150, just below the 20-day SMA.
Source: TradingView
SOL made a strong recovery on Friday, rising by almost 3% to push back above the 200-day SMA and settle at $154. Bullish sentiment persisted over the weekend as SOL rose by 3.11% on Saturday and 4.82% on Sunday to surge past $160 and settle at $167. SOL experienced significant volatility on Monday as sellers attempted to drag the price below $160 while buyers looked to push SOL past $170. SOL eventually fell back in the red after reaching a day high of $171, ultimately dropping by 0.71% to $166, but remained above $160. The current session sees buyers back in control as they look to build momentum and attempt another move past $170.
Dogecoin (DOGE) Price Analysis
Dogecoin (DOGE) has encountered significant volatility since the weekend as it struggles to push to $0.150, with buyers losing momentum in the face of considerable resistance. As we can see in the price chart, DOGE hit a day low of $0.120 on Thursday as sellers attempted to drag the price below its support level. However, it rebounded from its support level, ultimately registering an increase of 3.34% and settling at $0.130. DOGE pushed above the 200-day SMA on Friday, rising by almost 6% and setting at $0.137. Buyers also attempted to push above $0.140 but fell back after reaching a high of $0.141.
Source: TradingView
The weekend was a mixed bag for DOGE as it rose by almost 5% on Saturday to go past $0.140 and settle at $0.144. However, it fell back in the red on Sunday, dropping to a low of $0.137 before climbing back above $0.140 and settling at $0.142 after a drop of 1.46%. The current week began with DOGE experiencing significant volatility, with the price reaching a day high of $0.149 and dropping to a day low of $0.138 before settling at $0.143 after an increase of 0.91%. The current session sees the price still experiencing significant volatility as buyers and sellers look to establish control.
Uniswap (UNI) Price Analysis
Like Dogecoin, Uniswap (UNI) has also seen significant volatility, with the price surging past $8.50 during the current session before dropping back. Despite starting the previous week strongly to push above the 200-day SMA on Monday, UNI fell back in the red on Tuesday, slipping back below the 200-day SMA and settling at $7.85. By Thursday, UNI had slipped below the 20-day SMA after dropping to $7.34. However, it recovered on Friday, rising by 1.51% to push back above the 20-day SMA and settle at $7.45.
Source: TradingView
Buyers attempted to push higher on Saturday but could only reach a day high of $7.59 before dropping by 1.75% to slip back below the 20-day SMA and settle at $7.32. Bullish sentiment picked up on Sunday as UNI rose by almost 6% top push above the 20-day SMA and $7.50, settling at $7.74. UNI faced substantial volatility on Monday as buyers attempted to push it above the 200-day SMA while sellers attempted to drag it back below the 20-day SMA. UNI eventually settled at $7.78 after making a marginal recovery. The current session saw UNI surge past $8.50 and the 200-day SMA reaching a day high of $8.80. However, buyers lost momentum, and the price fell back below $8.50 and is currently trading at $8.11, up by just over 4%.
Dogwifhat (WIF) Price Analysis
Dogwifhat (WIF) has started the current week in the red, having registered a substantial drop on Monday, with the price struggling to stay above its support level. WIF was quite bearish during the previous week and dipped to a day low of $2.44 on Thursday, slipping below the 20-day SMA before recovering to push back above the moving average and settle at $2.54. WIF registered an increase of 4.50% on Friday, rising to $2.65. However, it began the weekend experiencing significant volatility on Saturday, eventually registering a marginal drop and settling at $2.64.
Source: TradingView
Sellers attempted to drag WIF lower on Sunday but were unsuccessful as buyers took over, allowing WIF to rise by 2.28% and settle at $2.71. Bearish sentiment intensified on Monday as WIF crashed by almost 8%, slipping below the 20-day SMA and settling at $2.50. The current session sees WIF remain in the red, with the price marginally down as sellers look to push it below its support level. WIF is currently trading at $2.48, down by 0.65%.
Artificial Superintelligence Alliance (FET) Price Alliance
Artificial Superintelligence Alliance (FET) has substantially declined this week, slipping below the 20 and 50-day SMAs and $1.40. FET had climbed above the moving averages over the weekend as it looked to reverse the previous week’s bearish trajectory. After dropping below the 50-day SMA on Thursday, FET made a strong recovery on Friday, rising by 5.39% to push back above the 50-day SMA and settle at $1.43. However, it could not push above the 20-day SMA and fell back in the red, dropping almost 2% on Saturday and settling at $1.40.
Source: TradingView
FET dropped to a day low of $1.36 on Sunday but recovered and pushed back above the 20 and 50-day SMAs to settle at $1.46, registering an increase of 4.07%. However, a move past $1.50 failed to materialize as bearish sentiment returned on Monday, and FET fell by 5.29%, slipping back below the 20 and 50-day SMAs to $1.38. The current session sees FET remain firmly in the red, with the price down by 1.50% and trading at $1.36. If sellers continue to control the session, we could see FET drop to $1.30.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
