Bitcoin is trading at $21.3k after rejecting the $25k range and losing momentum since last night. Ethereum prices are down about 10% this Friday. With an 8% decline, the general Cryptocurrency market is trying to stay over the $1 trillion market cap threshold. Surprisingly, the sudden price drop coincides with higher trading activity, with Bitcoin’s 24-hour volume up 26% and Ethereum’s up 25%.
Key Points:
- There was a significant correction on the price of Bitcoin and Ethereum, dropping to monthly lows.
- An increase in trading activity suggests a price continuation pattern.
- Stocks plummet while cryptocurrency market battles to stay above $1 trillion capitalization.
- BTC is likely to touch below $20k over the weekend before any relief rally is initiated.
Bitcoin Market News Update
BTC’s price correction today, which brought the cryptocurrency asset plunging below the $22k area, doesn’t seem to have an actual cause or influence. BTC and ETH are expected to continue correcting over the weekend, albeit a price decline accompanied by an increase in trading volume suggests a price continuation pattern. This shows that investor’s sentiment were not affected by this sudden unexplainable decline today.
We’re likely going to see BTC go under $20k, breaking below its monthly low of $20.8k. On the plus side, Ethereum’s monthly low is around $1,400, and the digital currency is far from falling to those price range at the moment.
A study from Cointelegraph says that cryptocurrency exchanges could control the market by creating and selling BTC only within their system. Since exchanges do not require evidence that they own Bitcoin, they are free to manipulate their order books by generating fictitious buy or sell orders without any monitoring system.
Exchanges Manipulate The Crypto Market
This underlines once more how crucial it is to regulate bitcoin exchanges globally. Exchanges that refuse to participate in asset audits ought to be taken from well-known cryptocurrency price aggregation websites like CoinMarketCap and CoinGecko.
Unfortunately, unregulated exchanges frequently bloat their order books with phony buy and sell volume to give the impression that their platform is larger than it actually is. Without mentioning names, if you visit CoinMarketCap’s exchange area, the majority of the unidentified exchanges with millions in trading volume are fraudulent. It’s only a matter of time for their secrets to be made public as more tighter regulations is underway.
Final Thoughts
The downward momentum that Bitcoin experienced this Friday spread to other key assets like Ethereum, Solana, BNB, XRP, etc. As long as the impending merge deal maintains Ethereum’s positive momentum, it will continue to beat Bitcoin in terms of price movement. It also maintains its valuation at 50% of Bitcoin’s.
The objective for the cryptocurrency markets will be to maintain above the $1 trillion support level given that stocks are also expected to see a minor price decline this Friday, with Dow Jones futures falling and Bed Bath & Beyond stock collapsing this weekend. The bears will seize charge and continue driving cryptocurrency to monthly lows if the market crashes below that level.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any Web3 tokens.
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Source: https://nulltx.com/as-the-cryptocurrency-market-corrects-the-prices-of-bitcoin-and-ethereum-drops-by-9-percent/