Crypto Bull Run Postponed? $200B Wiped Out as Market Turns Bearish

After setting the stage for bullish sentiment in September, the crypto market opened the fourth quarter with a bearish outlook. Led by Bitcoin (BTC) and Ethereum (ETH), the cryptocurrency market cap has wiped out over $200 billion in valuation during the past three days.

The crypto bearish outlook has been catalyzed by the deteriorating geopolitical situation in the Middle East and between Russia and the Western countries. Additionally, the US SEC has shown no signs of backing down from its position in the crypto regulatory crackdown after appealing the recently concluded Ripple case.

As a result, crypto traders continue to wonder if the highly anticipated October bullish sentiments have since changed to ‘Rektober’.

Why You Should Prepare for Potential Crypto Rebound Ahead

🎃 Mentions of “Uptober” have declined significantly, painting a picture that traders have become much more bearish on the idea of this month being an automatic money printer for crypto. The lack of optimism opens the door for (at least) a short-term bounce. 📈 https://t.co/iACWMGPvSs
— Santiment (@santimentfeed) October 3, 2024

With the crypto market being trapped in bearish sentiments in the past seven months, it is safe to assume that a market reversal is on the horizon. According to market intelligence platform Santiment, the low crypto optimism among traders is an indication that a major rebound will happen soon.

Although crypto traders have turned bearish on the idea of money printing, fundamentals point to the exact opposite scenario. Recently, Fed Chair Jerome Powell highlighted that the September rate cut was a good decision and signaled for more similar actions in the near future.

Ahead of the U.S. 2024 elections, the crypto topic will remain a major issue, with both sides of the political spectrum seeking sympathy for the more than 50 million voters invested in the web3 space.

Technical Aspect

Since May, every rejection of the MVRV Ratio from its 90-day average has led to a significant #Bitcoin correction.
The latest rejection has already triggered a 10% drop, suggesting there could be further downside ahead. Stay cautious! pic.twitter.com/LnqAl5eEiq
— Ali (@ali_charts) October 3, 2024

The cryptocurrency industry will likely continue in bearish sentiment until the whale investors stop dumping into the secondary markets and begin a new accumulation phase. From a technical standpoint, Bitcoin price could drop to $52k soon and trigger an avalanche in the altcoin industry, unless it consistently closes above $71k in the near term.

Also Read :
Binance’s Trading Activity Declines to 4-Year Low as It Faces 20% Drop in Trading Volume
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Source: https://coinpedia.org/news/crypto-bull-run-postponed-200b-wiped-out-as-market-turns-bearish/