Crypto Market Review, Oct 14

Following the short-term panic in the crypto market yesterday caused by higher-than-expected inflation figures, we are seeing a brief recovery in several digital assets.

Market prices plummet

Prior to the CPI release, most cryptocurrencies entered a correction phase as relatively strong assets began to lose up to 10% of their value in the last 24 hours. Numerous assets including XRP, ADA and even Bitcoin fell to new local lows, creating a dangerous possibility of a drop to lower lows.

Source: CoinMarketCap

The total market capitalization has also plunged, losing more than $30 billion in less than a day, the biggest one-day loss since the summer. Bitcoin shared the sentiment of the traders and fell to the September bottom at $18,380.

The biggest loser is recovering

Yesterday Cardano was one of the biggest losers in the market losing a major base under it. Such a trend seemed critical for an asset that has been moving in a downtrend for over a year.

advertisements

A further drop would have created even more pressure on an asset that has been justifying its place as the least profitable top 10 cryptocurrency in the market. Unfortunately, the movement of ADA in the market shows that recovery will not be a possibility in the future either.

Ethereum needed only $50 million

Two hours after the CPI release, Alameda began withdrawing funds from Circle en masse. According to transaction data, $46 million was moved from the platform and then transferred to Binance and FTX.

After the transaction was finalized, the price of ETH saw a massive 9% bounce despite taking a huge loss shortly before. Some investors assumed that Alameda could move ETH by 9% on such modest volume.

However, the trading volume of Ethereum is enough to conclude that it was not possible to trigger a 9% move with just $50 million, especially considering the liquidity on Binance and FTX. The most likely scenario is that the funds injected into the market became a start for the rally that would have occurred without the Alameda funds.

More altcoins on the mend

Apart from the usual representatives of the industry, we saw Atom with the most active growth assets in the market in the last 24 hours. At press time, the asset has gained over 6.3% of its value, targeting a spike above the 50-day moving average.

Since mid-September, Atom has continuously moved lower, losing over 27% of its value despite the previous 182% rally. The strong price performance despite the poor market conditions attracted many investors to the ecosystem, and will most likely help Atom if the bulls can push it above the local resistance level and initiate a full recovery.

Leave a Comment