Bitcoin, Ethereum, Dogecoin Decline As Binance Smart Chain Is Halted: Analyst Says ‘Only A Matter Of Time Before We See Short Liquidations’
Major coins flashed red on Thursday evening as the global cryptocurrency market cap declined 1% to $959 billion at 8:57 p.m. EDT as Binance Smart Chain was halted after suffering an expoit on a cross-chain bridge. Price Performance Of Major Coins Coin 24-hour 7-day Price Bitcoin BTC/USD -1.25% 2% $20,019.36 Ethereum ETH/USD -0.5% 0.9% $1,358.30 Dogecoin DOGE/USD -2.5% 4.4% $0.06 Top 24-Hour Gainers (Data via CoinMarketCap) Cryptocurrency 24-Hour % Change (+/-) Price Casper (CSPR) +11.8% $0.035 XDC Network (XDC) +5.1% $0.03 Ravencoin (RVN) +3% ??$0.036
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Why It Matters: BitcoinandEthereumtraded lower on Thursday evening after major U.S. stock indices charted declines intraday. At the time of writing the S&P 500 and Nasdaq futures were 0.2% and 0.25% lower, respectively.
Investors remain nervous about the September jobs report due for release on Friday.
U.S. stocks bounced around on payrolls eve, digesting another round of hawkish Fed speak.Minneapolis Fed PresidentNeel Kashkarisignaled there is no Fed pivot coming until financial conditions worsen significantly from here, saidEdward Moya, a senior market analyst with OANDA.
Bitcoin appears to be consolidating around the $20,000 level as much of Wall Street awaits Fridays nonfarm payroll report, said Moya in a note seen by Benzinga.
Much of the crypto headlines focus on the recent woes for the space but are not containing any new bearish catalyst. Bitcoins next major move will likely be determined by what is the next major move with rates and we will find that out tomorrow morning.
Justin Bennettsaid that cryptocurrency markets have been boring recently and in particular action related to Bitcoin.
This has been a range trader's dream, though. I still think it's only a matter of time before we see short liquidations run between $20,450 and $20,800, said the trader on Twitter.
Some pretty boring markets recently, #Bitcoin in particular. This has been a range trader's dream, though.
I still think it's only a matter of time before we see short liquidations run between $20,450 and $20,800.
Just playing the range for now. $BTC pic.twitter.com/Xq1eRUe8nn Justin Bennett (@JustinBennettFX) October 6, 2022
Market capitalization versus its realized capitalization,a metric that is calculated by dividing an assets market capitalization by realized capitalization,shows that average traders are still underwater on their investments, tweeted market intelligence platform Santiment.
Based on most returns across multiple timeframes, [altcoins] continue to show historically beneficial levels for the patient.
Even with mild price rebounds for most assets these past 3 weeks, MVRV data shows that average traders are still well under water on their investments. Based on most returns across multiple timeframes, #altcoins continue to show historically beneficial levels for the patient. pic.twitter.com/kTBDmwSXlw Santiment (@santimentfeed) October 6, 2022
Institutional investors are still not buying Bitcoin, tweeted CryptoQuant. The apex coin is likely to lose its upward momentum if the prices rose without purchasing by institutional investors before the FOMC rate announcement in November, said the community-based cryptocurrency analysis firm.
Institutional investors not yet buying $BTC
"If prices rose without buying by Institutional investors before the FOMC rate announcement in November, it is likely to lose its upward momentum and dump it."
by @MAC_D46035
Read Morehttps://t.co/V1BoIUxvTu CryptoQuant.com (@cryptoquant_com) October 6, 2022Meanwhile, Binance Smart Chain, a blockchain associated with the largest cryptocurrency exchange Binance,was temporarily halted on Thursday after suffering an expoit on a cross-chain bridge.
Binance CEO Changpeng Zhao tweeted an apology for the "inconvenience."
An exploit on a cross-chain bridge, BSC Token Hub, resulted in extra BNB. We have asked all validators to temporarily suspend BSC. The issue is contained now. Your funds are safe. We apologize for the inconvenience and will provide further updates accordingly. CZ Binance (@cz_binance) October 6, 2022 He said the current impact was equivalent to $100 million, an amount quarter of the latest BNB burn.
The current impact estimate is around $100m USD equvilent, about a quarter of the last BNB burn. CZ Binance (@cz_binance) October 7, 2022
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