Bitcoin and other cryptocurrencies have managed to retain their stability on Wednesday, even as the stock market experiences a selloff due to increasing bond yields. Despite the pressure on risk-sensitive assets, traders remain optimistic about significant gains in the coming weeks.
The price of Bitcoin has only experienced a slight drop of less than 1% in the past 24 hours, currently trading at $27,550. Throughout the day, it has stayed within the range of $27,300 to $27,700. This largest digital asset has managed to maintain its position above the $26,000 zone, which has been a consistent trading level for over a month, indicating a period of relative calm for cryptocurrencies. However, Bitcoin has declined from its recent high above $28,000 earlier this week.
According to Alex Thorn, head of research at crypto financial services group Galaxy, Bitcoin has demonstrated resilience despite the surge in bond yields and the strengthening of the dollar. Limited selling and unwavering confidence from long-term holders have played a crucial role in its ability to weather these challenges. Thorn added that if Bitcoin surpasses the $28,000 mark decisively, it could open up opportunities to test the $30,000 range.
Stay tuned for more updates on the exciting world of cryptocurrencies.
Bitcoin Holds Steady Amidst Stock Market Sell-Off
Despite a recent sell-off in the stock market, Bitcoin has remained relatively stable, trading above its previous range and inching closer to recent highs. This is notable considering the surge in bond yields, with the yield on the 10-year U.S. Treasury note surpassing 4.8% for the first time since 2007. Investors continue to express concerns regarding the outlook for interest rates.
The prevailing belief is that higher yields exert pressure on risk-sensitive assets, as they make risk-free government debt more attractive and reduce the incentive for investors to take on riskier bets like Bitcoin. While climbing yields have caused havoc in the stock market this week, cryptocurrencies have managed to hold their ground. Traders remain optimistic, building on the momentum from a remarkably successful September, and are hopeful for further gains in the coming month.
According to Thorn, an industry expert, October has historically been Bitcoin’s best-performing month, apart from 2018. Over the past nine years, the average gain for October stands at an impressive 19.48%. This has prompted market participants to position themselves strategically for significant Bitcoin upside in October. Many have even been willing to pay steep options premiums to capture potential gains.
As the stock market faces increasing volatility, Bitcoin emerges as a stable and enticing alternative for investors seeking steady growth potential. With its resilience amidst economic uncertainties and consistently strong October performance, Bitcoin continues to attract attention and garner confidence from traders worldwide.
Crypto Market Update
The cryptocurrency market showed minimal fluctuations today, with Ether, the second-largest cryptocurrency, experiencing a minor decline of less than 1% and settling at $1,650.
Smaller tokens, also known as altcoins, displayed a mixed performance. Cardano recorded a slight decrease of 1.5%, while Polygon witnessed a modest increase of 3%.
On the other hand, memecoins exhibited weakness in their prices. Dogecoin depreciated by 2%, while Shiba Inu saw a decline of 1%.
