Bitcoin
Bitcoin (BTC) price drops to US$63 thousand; Solana’s SOL, Ripple’s XRP Defy Crypto Crisis
Crypto rally paused on Monday during US bitcoin trading hours (BTC) falling close to $63,300 as US regulators increased pressure on crypto firms.
A move above $65,000 on Monday morning was quickly reversed and prices were pressured further following the disclosure from popular brokerage Robinhood (HOOD). its cryptographic arm received a warning from Wells over the weekend from the U.S. Securities and Exchange Commission (SEC), a move that often foreshadows enforcement action against a company.
The pullback was shallow, however, with most crypto assets firmly above last week’s low. BTC is down 1.5% in the last 24 hours but is still up more than 10% since Wednesday.
Alternative cryptocurrencies have had mixed performance, with ether (ETH)dogecoin (DOGE)shiba inu (SHIB) and native layer 2 network Polygon token (MATIC) sinking 2%-3% during the day, while solana (SUN) and adjacent Ripple XRP showed relative strength advancing 4%-6%. The broadest indicator on the market CoinDesk 20 Index (CD20) fell 0.3%.
Despite the halt in the rally, crypto hedge fund QCP Capital noted renewed demand for September bitcoin call options with strike prices of $75,000 and $100,000, underscoring increased optimism that BTC will rise to higher prices. higher in the coming months.
“We are seeing some continued rise in volatility and [funding] rates after the reversal jump from Friday to the weekend,” crypto hedge fund QCP Capital said in a market update on Monday.
Perhaps fueling the rapid recovery from last week’s lows were rumors about expanding access to newly listed Hong Kong spot bitcoin and ether ETFs for Chinese investors.
Richard Byworth, managing partner at Syzcapital, said in an .
In theory, the measure would have a significant impact, opening the floodgates to Chinese money looking for alternative assets amid the collapse of the real estate and stock markets.
However, Chinese investors were banned from using crypto ETFs and there was no official communication about the rule change.
Bitcoin ended last week on a bullish note, quickly recovering from its pullback to $56,000. John Glover, chief investment officer at cryptocurrency bank Ledn, said there is still a possibility of a collapse to lower prices before ending its correction from March’s all-time high of $73,000.
“While the drop to $56,500 may have completed the correction, I still expect to see a price of $52-55,000 before the completion of wave 4,” Glover said, referring to the Elliot Wave theory, a technical analysis that assumes that asset prices move repetitively. wave patterns.
The theory claims that price trends develop in five stages, of which waves 1, 3 and 5 are impulse waves representing the main trend, while waves 2 and 4 are pullbacks between impulsive price action.
“Once the [corrective] wave is completed, I expect the Wave 5 push to around $92,000 to happen,” he concluded.