Bitcoin fell below $18 ths, other cryptocurrencies were also affected. Our Crypto-Upvotes experts pointed out reasons for market decline. And also told about its short-term prospects

In the evening of November 8 Bitcoin rate momentarily fell to a two-year low of $ 17.1 ths. As of November 9, Bitcoin cryptocurrency is trading at $ 17.2 ths, it has fallen in price by 10% over the past 24 hours.

Bitcoin price decline accelerated as the rate of cryptocurrency exchange token FTX (FTT) plummeted almost six-fold, from $19 to $3. Altcoin now trades at $4+ and shows a daily decline of 74%.

The FTT token collapse and the overall situation around the FTX crypto exchange caused the entire crypto market to fall. First, the FTX exchange lost liquidity and its own token price collapsed. And then Binance announced about buying this exchange.

Possible FTX and Binance deal attracted attention from regulators. As well as other reasons that helped Bitcoin collapse

FTX and Binance deal attracted regulators, raising antitrust concerns. Regulators have the power to block major mergers. If they fear it will limit market choice. And there are strict laws against anticompetitive behavior.

Among other factors in a declining market is the tension between China and Taiwan. Because China is a pretty big player in the crypto market. Taiwan makes chips for mining. So this factor is important and pressures cryptocurrency prices down.

Another reason, our expert called the U.S. Congress elections. At the moment, Republicans are expected to win the elections to House of Representatives.

Cryptocurrency market sympathizes, first of all, with the Democratic Party. At least by the volume of investments in their election campaign. Foreign representatives of the cryptoindustry are betting exactly on Democrats.

In addition, all these problems of crypto-industry coincided with the growth of stock indices and weakening of USD.

Crypto market at an early stage of formation of the “bottom” ?

Buyers could not take advantage of the moment to pass the level of $22.5 ths. While USD is under pressure, and stock indices are set to rise. Buyers have a chance to return Bitcoin price to $20 ths. Now we need to wait for volatility to decrease. And exchanges FTX and Binance clarified the situation and their further actions, said our expert.

Our expert added that the current situation, which now presses the crypto market, could be a culmination of decline. Because the current situation in crypto industry may be the initial stage of forming a “bottom”. Because for many market participants such prices are of interest to increase buying volume or to enter this market.

Now there should be a set of factors that will be able to raise the price up. Therefore now the L-shaped recovery, rather than a sharp reversal of a bearish trend is more probable. If the situation with China and Taiwan does not worsen. It is unlikely that anything else can hurt the market more than it already has.

Deal volume in cryptocurrency market has fallen to values of December 2020. Our experts have analyzed what is happening in this industry and told us when volumes will start to grow again

In October, trading volumes on cryptocurrency exchanges updated the minimum since December 2020. The amount of transactions on trading floors last month amounted to $543 billion compared to $733 billion in September.

Main reasons for volume fall

The main factors that influenced the decline in trading volumes include falling cryptocurrency prices. And, as a consequence, a decrease in interest in popular and hype assets, such as NFT and DeFi. As well as external factors, primarily risks of recession in western economies on back of tighter monetary policy. And geopolitical tensions that have increased this year.

At the same time, according to our Crypto-Upvotes expert, it is impossible to talk about a decline in interest in cryptocurrencies. Despite the decreased trading volumes of retail players and low interest in social networks and media space. Blockchain technology itself and crypto-projects are actively financed by funds and institutional investors.

Market has been in a sideways trend for 137 days (4.5 months), our finance expert recalled. When the price trades in a limited range for a long time, investors get nervous, he said.

“Statistically, markets are in a sideways trend more than 75% of the time. You have to live with that. Buyers’ activity remains low on the background of risk aversion.” – explained our specialist.

Is “Crypto Winter” in hot phase? What will happen to cryptocurrency trading volumes?

Low trading volumes indicate that the cryptocurrency market is in the “crypto winter” stage.

However, the current situation in the crypto market cannot be called “crypto winter”. Unlike a similar period in 2018-2019, both capitalization and number of participants are much higher now. And development of blockchain products has not stopped, despite falling prices for cryptocurrencies.

Volume of investment in industry from outside also indicates normality of current market situation. And the volatility on individual top assets is quite enough to make money even in current periods of time.

Trading volumes will grow as volatility rises and prices of major crypto assets move out of the ranges they have been in since this summer. Once market participants understand the direction of further movement. They will immediately connect to it, which will allow trading volumes to grow according to our Crypto-Upvotes experts.

Our Crypto-Upvotes experts discussed how US dollar affects cryptocurrency market. And gave predictions about the further movement of leading cryptocurrencies

Bitcoin rate rose from $19.5 ths. to $21 ths. per day. Ethereum rose by 13% and passed the mark of $1.5 ths. Among the top 30 cryptocurrencies by capitalization, all coins, except stabelcoins, increased in value. Market capitalization of entire digital currencies market showed growth of 6.9% and exceeded $1.047 billion.

At the same time, the US dollar collapsed against the euro on Forex market to its lowest level in five weeks. For the first time in this time, the U.S. currency became cheaper than euro. Dollar index (DXY) is also near a three-week low.

Impact of dollar index on cryptocurrency rates

How Bitcoin and the crypto market in general behave is influenced by the U.S. Dollar Index. Our expert explained that the DXY index (U.S. Dollar Index) shows the dynamics of the dollar against a basket of major world currencies. Such as : Euro, Swiss Franc, Pound Sterling, Canadian Dollar, Japanese Yen and the Swedish Krona.

Thus, the index shows the growth or decline of the U.S. dollar relative to a basket of currencies. When the index goes up, Bitcoin usually goes down. And when the index falls, Bitcoin goes up. This inverse correlation between the dollar index and Bitcoin was noticed a decade ago, and has been confirmed constantly since then.

Now Bitcoin’s rise above the $20,000 mark is due to the DXY index going down. The reason for this is the release of good reports by IT giants. As well as relatively positive data on the US labor market. And investors’ hopes that this information will lead FED to stop raising the rate.

Short-term strengthening of BTC or not?

However, despite some slowdown in U.S. inflation. The Fed will continue to tighten monetary policy. According to our expert, there is now too big a gap between inflation and the rate. Therefore, there is no reason to expect a strong slowdown in prices.

As early as next week at the meeting, Fed policymakers may raise the rate again by 75 bps (0.75%) to 4%. If FED declares that this trend will continue in the coming months, then today’s rate rally will be crossed out and sent to the trash garbage can.

According to our expert, we should expect in this case a new decrease of Bitcoin to the area of $15 thousand or even lower. Ethereum may go down to $1,000.

Under current conditions, cryptocurrency investors can liquidate futures positions. And make a profit by simply locking in profits on buy trades. Because there is no certainty that the current growth trend will continue now. Most likely, in the coming days it will be possible to observe the development of demand for the US dollar again.

What are prospects for growth of BTC?

Most likely, the trend of declining cryptocurrency rates may begin to change only in the first half of 2023. According to our expert, that is when the process of Fed’s monetary policy tightening may end. Or the step of rate increase will not exceed 0.25%. Then stock markets will start to form trends on increase of quotations. And on cryptocurrency market too, it will happen.

What events in the next month may lead to changes in the price of Bitcoin. And to what levels it can rise or fall

First Cryptocurrency has continued to trade in a relatively narrow range since mid-June 2022. Since then, the rate of BTC fell to a low of $17.6 ths. And at its peak, it reached $25.2 ths. Most of the time, cryptocurrency is near the mark of $20 ths.

Over the past month, the Bitcoin price range has become even narrower. Maximum value of the rate for the last 30 days reached $20.4 ths (October 6). The rate of Bitcoin fell to a minimum on the day of publication of the U.S. inflation data for September. At that time the price of BTC fell to $18.3 ths, but quickly recovered.

As of Oct. 24, the leading cryptocurrency is trading around $19,200, according to CoinMarketCap. Bitcoin has a market capitalization of $371 billion, with a daily trading volume of $28.8 billion. The asset’s share of the cryptocurrency market is 38.3%.

U.S. congressional elections and macroeconomics could affect BTC price

The U.S. Congressional elections are due in November, our Crypto-Upvotes experts note. Cryptocurrency and traditional markets are generally strong in the run-up to this election. However, our experts say it’s not quite right to expect the same rate behavior as it did after the last election. The previous congressional elections were held in early November 2020. The cryptocurrency market was in a bull market. And since then, Bitcoin has gone from $15k to $61k by April 2021.

But today both the stock market and the cryptocurrency market are still bearish. And the volatility in the cryptocurrency market is quite low. Therefore, no serious rally is expected from BTC. In case it fails to rise above $23k, the downward pressure will continue.

The bearish pressure is amplified by global macroeconomic weakness combined with the popularity of short ETFs on Bitcoin. This raises concerns about whether this time there will be a repeat of November 2018, when Bitcoin collapsed from $6k to $3k also after a long period of consolidation and low volatility.

Investors, primarily institutional investors, as in the stock market, always assess the situation in terms of the reaction of the Federal Reserve (Fed). As well as on macroeconomic data on the United States. Therefore, the price of BTC may react to further Fed Funds rate hikes.

Also, among important events for Bitcoin and the entire crypto market in November, our expert called the TOKEN2049 conference. It will be held from November 9 to 10 in London. Our expert noted that it will be attended by such well-known figures in the cryptocurrency community as Galaxy Digital founder Mike Novogratz, Tezos co-founder Kathleen Breitman and Blockchain.com CEO Peter Smith.

There is hope that the rate will soon stop rising by 75 bps. (0,75%)

At least a “slight hope” that the rate will soon stop rising by 75 bps (0.75%) at the end of each meeting. . As well as reduction at least to 0.25% or suspension of increases. All this will lead to the development of a medium-term trend for growth i Bitcoin rate.

In this case, psychologically important level of $20K may be overcome. This will allow the bulls to rush to the levels of $24K and $28.3K in the coming month. More rapid growth looks too optimistic variant so far. But it may lead to $32 thousand and $36.8 ths, says our expert.

It’s also worth paying attention to the following levels in the price of BTC when it grows: $20.5 ths, then $22.8 ths. Reaching the same Bitcoin mark at $25 K will already mean the change of current bearish trend.

Signals for continuing a bear market trend

Signal to continue bear market could be the level of $16 K. Then we should pay attention to the level of $14 K, and, finally, $10 K.

In the coming month, Bitcoin may show a decline. First, price of the first cryptocurrency may fall to around $18 K, and later to the area of $15 K – $16 K. Our expert noted that it will be possible if Fed rate will continue to rise.

BTC has been written into history of world achievement Guinness Book of World Records on several counts, Crypto-Upvotes experts review

Bitcoin has been listed in Guinness World Records, the latest edition of Guinness World Records 2023. BTC is listed as the oldest cryptocurrency. And also as the first decentralized cryptocurrency and the most expensive cryptocurrency.

The latest of these records was recorded on March 24, 2022. On that day, Bitcoin was worth $42,900 and had a market capitalization of $816 billion. In addition, several other records related to BTC can be found in the book. For example: the largest theft of a cryptocurrency or the world’s first confiscation of a cryptocurrency. And even the largest cryptocurrency poker win ($1 billion).

There are also many NFT-related entries in the Record Book now. Among them is the very first unique Quantum token created in 2014. Or the most expensive token from NFT collections – CRYPTOPUNK #5822, bought for $23 million. And also the most expensive NFT issued by a sports club – Manchester City (UK) tokens with a market capitalization of $47 million.

Ethereum also appeared in the Guinness Book of World Records. However, ETH is not marked by any record. It is mentioned in an article about the first NFT Terra Nullius released on this blockchain in 2015.

The Interpol team, based in Singapore, will assist different countries’ law enforcement agencies. Assistance will be provided in investigations related to cryptocurrencies. Crypto-Upvotes expert review

Interpol has created a specialized unit to combat crimes related to cryptocurrency and other virtual assets, reports Business-Standard. The creation of the unit was announced by Secretary General of the International Police Jürgen Stock. This was said at a press conference before the start of Interpol’s 90th jubilee General Assembly. It takes place in Delhi from 18 to 21 October.

The main problem faced by law enforcement agencies of different countries in their investigations, the head of Interpol called the lack of a legal framework with regard to assets such as Bitcoin and Ethereum. The new team, formed in Singapore, will help fight crimes in this area in different countries. Currently, the international police force has more than 190 member states.

Interpol has helped investigate cryptocurrency crimes many times before. Not long ago, the international police issued their “red notice” against Terraform Labs co-founder Do Kwon. He is facing charges in connection with the $60 billion collapse of cryptocurrencies he created.

Our experts told us about possible price movements for cryptocurrencies in coming weeks. And gave forecast for their prices in accordance with different variants of events development

On October 13, after the publication of inflation data in the U.S., leading cryptocurrencies updated their price lows. Bitcoin rate fell to $18.3 thousand, less than the last time it was worth on June 20, when it was trading about $18.2 thousand. Also Ethereum showed decline – it fell to $1.2 thousand, updating its minimum since mid-July.

But by October 14 Bitcoin had recovered to the level of $19.8 thousand, the daily growth was 5.4%. Аnd Ethereum also rose in price by 7.2%. And the total market capitalization of cryptocurrencies is $980 billion, which is 5.5% more than a day ago.

Current situation on crypto market

Macroeconomics is the leading factor for cryptocurrency markets right now. Our experts notice that after the new release of inflation data in the U.S., there was a rare volatility in leading indices. But at the same time, the sharp drop was just as sharply bought back by investors. Cryptocurrencies reacted in a similar way.

Crypto market heavyweights such as Bitcoin and Ethereum are hardly reacting to events in the cryptosphere right now. However, there are not many negative factors. The main factor “confusing crypto-enthusiasts” is the trend toward tighter regulation in many countries. Because this brings cryptocurrencies closer to traditional asset classes.

Also, cryptocommunity is concerned about the decline of decentralization. Or the lack of growth of this indicator in many blockchains. In addition, the outflow of capital from GameFi, NFT and Metaverses markets looks logical against the background of energy crisis and risks of recession in economics.

Negative forecast scenarios

In case of a prolonged fall in Bitcoin, it is possible that those miners who have been working at a loss for a long time will capitulate. This is likely to lead to a decrease in the level of support. And it will bring Bitcoin’s price down to around $14,000 or $10,000.

Large capital is now panicking and seeking to withdraw funds in stablecoins and US dollar. The most likely scenario is that bitcoin will drop to $17,800 in coming weeks.

In addition, the fall in Bitcoin is accompanied by the biggest sell-offs of miners in the last 2 years – about 8,000 BTC per month (according to Glassnode). This has also influenced the rate of BTC decline and overall current market sentiment, our Crypto-Upvotes experts say.

Positive forecast scenarios

Crypto-Upvotes experts called a scenario in which cryptocurrency rates will start growing in the near future unlikely. However, if Bitcoin breaks through resistance level of $20.4 thousand, it will be possible to see movement to $22.5 thousand, our expert believes.

Positive factors that could support cryptocurrency rates are hard to find right now. At the same time, the option to increase prices of cryptocurrencies should not be discarded either. Because investors are eager to redeem assets at lower prices right now.

According to our expert, it could lead to overcoming the level of $1.4 ths for Ethereum. Bitcoin may initially reach a psychologically important level of $20,000. And its overcoming will lead to increase of BTC price up to $22 ths.

Binance will issue loans to develop this industry. Also the company intends to launch products for cloud mining

The cryptocurrency exchange announced that it has launched a $500 million project on Binance Pool platform to support cryptocurrency mining industry. This project involves lending to companies. Which are engaged in mining Bitcoin and infrastructure of digital assets around the world.

Funding will be available for 18 to 24 months at 5-10%. This will be subject to security of physical or cryptocurrency assets satisfactory to Binance.

Also, company intends to launch products for cloud mining. So, cryptocurrency mining will be carried out with the help of rented equipment located in data centers of service providers. Binance Pool is currently looking for such providers to cooperate with.

On October 10, Bitcoin’s mining complexity increased by 13.5%. This was the strongest increase since May 2021. Meanwhile, at $20,000 per Bitcoin, the profitability of mining companies is already close to the cost of production. And in some cases it goes into negative values.

BNY Mellon licensed from New York state regulator to handle two cryptocurrencies. Review by Crypto-Upvotes experts

The oldest U.S. bank BNY Mellon began to provide services for cryptocurrency storage, writes The Wall Street Journal. For this purpose, the company received a license from the financial regulator of New York.

Bank will store the keys needed to access and transfer the cryptocurrency. It will also provide accounting services for Bitcoin and Ethereum.

BNY Mellon claims to be the first of eight systemically important U.S. banks to provide custody services for digital currencies. And it allows customers to use one custody platform for both traditional and cryptocurrency assets.

The platform will go live with select investment-fund firms this week. The bank said it expects to expand its crypto custody offerings to additional clients in the future, pending regulatory approvals.

In the summer of 2021, BNY  joined a group of six banks that plan to launch Pure Digital, a digital asset trading platform. At the time, the bank said it would roll out cryptocurrency infrastructure as the legal and regulatory framework emerged.

Thanks to the integration of services of one of largest cryptocurrency exchanges. Some Google customers will be able to pay with cryptocurrency for cloud services, Crypto-Upvotes expert review

Some Google customers will be able to pay for cloud services in cryptocurrency at early 2023. This was announced by representatives of corporation at conference Google Cloud Next, reports CNBC. This will be possible due to cooperation of corporation with one of the leading cryptocurrency exchanges Coinbase.

First, corporation will accept payments in cryptocurrency from a limited number of customers through its integrated service Coinbase Commerce. Amit Zaveri, vice president and general manager and head of the Google Cloud platform, told CNBC. Currently, Coinbase Commerce supports 10 currencies, including Bitcoin, Bitcoin Cash, Dogecoin, Ethereum and Litecoin.

As time goes on, corporation will allow many more customers to use cryptocurrency. Also, corporation is considering using Coinbase Prime service to store cryptocurrency and conduct transactions in it.

At the same time, Coinbase said it will use Google cloud infrastructure for storage. Additionally, Coinbase will migrate its applications from Amazon Web Services cloud service. Also, when making cryptocurrency payments Coinbase will receive a percent of transactions.