The cryptocurrency market displayed minimal movement on Friday. At the time of writing, Bitcoin is trading flat at $58,020, down a mere 0.4% in the last 24 hours and down 5% compared to this time last month.
Amid lack of volumes ahead of the weekend, analysts have been forecasting a potential bottoming of Ethereum (ETH) over the next 2-4 months.
The second-largest cryptocurrency by market capitalization, is experiencing a slightly steeper decline in Friday morning trading. At $2,345, it has slipped 0.8% in the last day, according to CoinGecko data.
Notably, Ethereum has underperformed Bitcoin over the past month, dropping 15% compared to Bitcoin's 5% decline.
This Week in Coins: Ethereum and Bitcoin Keep Bleeding as Telegram Drama Continues
Illustration by Mitchell Preffer for Decrypt. There's depressing news for those hoping the price of crypto markets would improve this week. Depressing news for nearly all investors, it would seem. Bitcoin continued to drop, and hard, this week. Over the past seven days, the price of the asset has descended by more than 9% and—after dipping as low as $52,690 on Friday—rolled into the weekend trading hands for $53,229, according to CoinGecko. That’s significantly lower than its 2021 record of $...
Amid this period of consolidation, analysts from 10X Research suggest that Ethereum could be approaching longer-term oversold conditions. While they caution against expecting an immediate rebound, the firm predicts a potential bottom forming within the next two to four months.
"Traders should monitor medium-term reversal indicators such as RSI and Stochastics," the 10X Research team advises, noting that these metrics can signal a turnaround from deeply oversold levels.
The RSI measures the speed and change of price movements to identify overbought or oversold conditions, while Stochastics compares a security's closing price to its price range over a set period, helping to predict potential market reversals.
Meanwhile, the ETF market continues to show divergent trends between Bitcoin and Ethereum products. Bitcoin spot ETFs on September 12 saw a net inflow of $39 million, with ARK's (ARKB) and Fidelity's (FBTC) leading the charge, contributing $18.3 million and $11.5 million respectively.
In contrast, Ethereum spot ETFs experienced a net outflow of $20.1 million on the same day, primarily driven by Grayscale's (ETHE) fund.
James Davies, co-founder and chief product officer of Crypto Valley Exchange CVEX.XYZ, told Decrypt that broader economic factors have been having a pronounced influence on markets.
"Tech stocks globally are showing a rally, good inflation data, improved growth data everywhere is allowing investment,” he said. Davies also underscored the importance of positive indicators from China and the potential for U.S. interest rate cuts as factors positioning the market for growth.
Bitcoin Sinks After Trump and Harris Leave Crypto Out of Presidential Debate
Bitcoin (BTC) experienced a modest decline on Wednesday, dropping approximately 1.5% to trade at $56,500. The slip comes after the highly anticipated U.S. presidential debate between Vice President Kamala Harris and former President Donald Trump made no mention of cryptocurrency regulation. The debate, which covered a wide range of topics from abortion rights to the ongoing conflict in Ukraine, left crypto enthusiasts and investors yearning for clarity on the candidates' stances regarding digita...
Looking ahead to the U.S. presidential elections, Darren Franceschini, Cofounder of Fideum, told Decrypt he anticipates a period of sideways price movement in the lead-up to November.
"The outcome of these elections could have a significant impact on the future acceptance and regulation of cryptocurrencies in the U.S. financial markets," he said.
He suggested that a crypto-friendly president could serve as a catalyst for market growth but expects high trading volume with minimal price movement until there is more clarity.
Edited by Stacy Elliott.
