Market picture
Bitcoin fell 2% to $19K in the past 24 hours as the US dollar rose and stock indices resumed their decline. Despite unfavourable market sentiment ahead of Wednesday's Fed rate decision, BTC managed to hold off from updating the previous day's low.
Ethereum lost 1.7% to $1335, with prices for the top altcoins ranging from
-2.7% (Shiba Inu) to + 7% (XRP), while total capitalisation fell 1.2% to
$927bn, according to CoinMarketCap estimates.
BTCUSD has been trading near the lower end of the trading range for the last
three months. The market's reaction to the Fed's decision later today will
determine whether we see a renewal of lows or a retreat from the bottom. The
trend of the last month and a half makes a bearish scenario the main one, but
still, surprises are not excluded.
News background
MicroStrategy bought an additional 301 BTC for $6 million at an average price of $19,851 in early August, according to a report filed with the SEC. MicroStrategy's previous investment in the first cryptocurrency was in June when the firm acquired 480 BTC worth around $10m.
Famous cryptocurrency expert Willie Wu said that futures on the CME exchange are putting significant pressure on bitcoin, and this is, to a large extent, political pressure. The SEC approves cryptocurrency futures ETFs but prohibits the launch of spot funds. That said, hedge funds can short BTC with leverage.
Real Vision founder Raul Pal believes that Solana and Avalanche, cryptocurrencies with their original blockchains, will repeat the dynamics of Ethereum in the previous cycle in the next bullish cycle.
The US exchange Nasdaq is launching a cryptocurrency division that will offer customers digital asset custody services and tools to secure crypto companies.
This article was written by FxPro’s Senior Market Analyst Alex Kuptsikevich.
