- Middle East unrest and Ethereum Foundation’s sizeable ETH sale dampen crypto optimism, with over $100M in futures evaporating.
- Bitcoin’s struggle for stability stands out amidst broader market dips, with the focus shifting towards its crucial $28K threshold.
Drawing from a recent CoinDesk update on Bitcoin, the crypto market is currently grappling with the aftershocks of the escalating Hamas-Israel conflict and the Ethereum Foundation’s notable ether (ETH) sale. Both events have caused turbulence, with a staggering $100 million wiped from futures positions and an average market slide of 2%.
Bitcoin’s Relative Resilience
While most cryptocurrencies wavered, Bitcoin (BTC) portrayed a semblance of stability. Over the last 24 hours, it reported a modest 1% loss but managed to float above the vital $27,500 support level during the Asian trading hours on Tuesday. Amidst soaring oil prices, the spotlight is now on riskier assets, particularly tech stocks and bitcoin.
Trusted analysts from FxPro communicated their observations to CoinDesk, stating,
“Technically, bitcoin remains in an uptrend but encountered resistance at its 200-day moving average over the weekend.”
The crypto community is now keenly observing BTCUSD, anticipating its consolidation above the $28,000 mark, which is the 200-day moving average. Achieving this could potentially catapult Bitcoin’s value to nearly $29,500.
Ethereum Faces Heat
Ether wasn’t as fortunate, registering a 3% slump, especially after the Ethereum Foundation offloaded tokens worth $2.7 million on Monday. This sale induced a panic amongst traders. Consequently, ether bulls experienced over $30 million in losses, marking the day’s highest loss across the cryptocurrency trading community.
Other Cryptos in the Downtrend
Solana‘s SOL tokens weren’t immune to the downturn, recording a near 5% decrease. XRP and Cardano’s ADA also faced setbacks, dropping by 3.7% and 3.4% respectively. The CoinDesk Market Index (CMI), which gauges the performance of hundreds of tokens, indicated a 1.9% decline, underlining a tough phase for crypto traders.