Cryptocurrency Market Struggles Despite Rally in Equity Market
Bitcoin and other crypto tokens were struggling on Thursday as the buyers remained on the sidelines despite a strong rally in the equity market and a fall in bond yields. The top crypto tokens, including Bitcoin and Ethereum, saw a downward trajectory, with mixed action in altcoins on the day.
Bitcoin and Ethereum in Red
The largest crypto token, Bitcoin, dropped by about 1 percent but managed to hold the $26,500-levels, while its largest peer, Ethereum, also saw a marginal decline but held above the $1,560-mark. This downward trend in the market reflects the hesitancy of buyers to enter the market at current levels.
Hamas Receives Millions in Crypto Donations
In a separate report, the Hamas terrorist organization and its affiliates received approximately $93 million in crypto donations between August 2021 to June 2023, according to data from Elliptic, a forensics firm, and BitOK, a Tel Aviv software company. The revelation has once again brought attention to the use of crypto as a financing method for such militant groups, sparking criticism.
Mixed Trading in Top Crypto Tokens
On Thursday, all top crypto tokens were trading mixed. Litecoin and Solana dropped by about 3 percent and 2 percent, respectively, while Dogecoin and Polkadot each shed about 1 percent. On the other hand, Chainlink rallied more than 2 percent, and Toncoin was up about 1 percent.
Total Cryptocurrency Market Cap and Trading Volumes
The global cryptocurrency market cap was trading lower, dropping to the $1.05 trillion-mark within the last 24 hours. However, total trading volumes rose over 2 percent to $25.81 billion, showcasing the ongoing volatility and fluctuation in the market.
Analysts Predict Further Downward Momentum for Bitcoin
BTC gained significant downward momentum, posting a continuous slide for three days after reaching the all-important $28,500-mark. According to experts, the $26,500 support level may not sustain further declines, potentially leading to a sell-off that could take Bitcoin down to $24,000 or beyond.
Traditional Banking and Cryptocurrency
In other news, JPMorgan’s in-house blockchain Onyx has launched its tokenized collateral network, signaling a big development in the traditional banking sector. Investors across financial markets, including crypto, are eagerly waiting for US CPI data, expected to be out later in the day.
Tech View by WazirX Trade Desk
The REQ utility token, introduced in 2017, plays a crucial role in upholding the reliability and robustness of the Request Network, a decentralized payment system built on the Ethereum platform. The trend for REQ/USDT surged by nearly 50% in the last week, with resistance expected at 0.14 USDT and strong support at 0.061 USDT. However, it is essential to consult a financial adviser before taking any position in the asset mentioned.
The cryptocurrency market continues to face challenges amid a strong rally in the equity market and increased volatility. As crypto tokens struggle to find momentum, analysts and investors are closely monitoring market indicators and developments in the traditional banking sector.
I have been a full-time professional writer for over 10 years, and have written for some of the biggest publications in the world. My work revolves around cryptocurrencies and blockchain technology, and I am widely considered to be one of the leading experts in these fields.I have written two books on the subject matter, and my articles have been featured in major news outlets such as The Wall Street Journal, Forbes, and Huffington Post. In addition to writing, I also give talks and seminars on cryptocurrency investing, and am a regular commentator on CNBC, Bloomberg, and other financial news networks.
