Crypto Market Review, October 14
After the short-term panic in the cryptocurrency market yesterday caused by higher than expected inflation numbers, we are seeing a brief recovery across various digital assets.
Market prices plummet
Before the CPI release, most cryptocurrencies entered a correction phase, when relatively strong assets began to lose as much as 10% of their value in the last 24 hours. Numerous assets, including XRP, ADA and even Bitcoin, plunged to new local lows, creating a dangerous possibility of a plunge to lower lows.
The total market capitalization has also fallen, losing more than $30 billion in less than a day – the biggest one-day loss since the summer. Bitcoin shared the sentiment of traders and fell to September’s low of $18,380.
The biggest loser is recovering
Yesterday, Cardano was one of the biggest losers in the market, losing an important foundation from under it. Such a trend seemed critical for an asset that has been moving in a downward trend for more than a year now.
Advertisements
A further drop would have put even more pressure on an asset that has justified its place as the least profitable cryptocurrency from the top 10 in the market. ADA’s movement on the market unfortunately shows that recovery will not be a possibility in the future either.
Ethereum only needed $50 million
Two hours after the CPI release, Alameda began massively withdrawing money from Circle. According to transaction data, $46 million has been moved from the platform and then transferred to Binance and FTX.
After the transaction was completed, the price of ETH saw a massive 9% decline despite a huge loss shortly before that. Some investors assumed that Alameda was able to move ETH by 9% with such modest volume.
However, Ethereum’s trading volume is enough to conclude that it was not possible to cause a 9% move with only $50 million, especially considering the liquidity on Binance and FTX. The most likely scenario is that funds injected into the market jump-started the recovery that would have occurred without Alameda’s funds.
More altcoins in mining
In addition to the usual representatives of the industry, we saw Atom with the most actively growing assets on the market in the last 24 hours. At press time, the asset has gained more than 6.3% in value, aiming for a peak above its 50-day moving average.
Since mid-September, Atom has continuously moved lower, losing more than 27% of its value despite the 182% gain before that. The strong price performance despite poor market conditions attracted many investors to the ecosystem, and it will most likely help Atom if bulls manage to push it above the local resistance level and start a full recovery.
