Bitcoin, Solana, XRP, Ethereum, ADA – Losses are piling up in the cryptocurrency market

Bitcoin, Solana, XRP, Ethereum, ADA: Losses Accumulate in the Crypto Market

The start of the week promised a positive trend for the crypto market with rising prices. But since Wednesday, BTC and altcoins have been under pressure. The reasons are varied.

Negative Macro Conditions

The world economy is sending warning signals again in Q3 2023, thereby unsettling major financial markets. Persistent high inflation in the US yesterday led to hints from the US Federal Reserve that continued high interest rates should be expected. In Europe too, inflation continues to flare up. On top of that, geopolitical tensions abound.

ETF Decisions Further Postponed

In the crypto market itself, regulatory matters are impacting the mood. A decision by the US Securities and Exchange Commission (SEC) on the approval of Bitcoin ETFs has been postponed. Such a decision is now not expected until the beginning of 2024, according to insiders.

Market Players Lead to Speculation

In such an environment, many crypto investors tend to react nervously. On-chain data shows that whales have significantly decreased their Bitcoin and Ethereum holdings since mid-October. Meanwhile, the number of small investors who currently have BTC and ETH under management has dropped sharply.

Solana Again Under Pressure

Solana, whose price progress was positive up until the previous week, is showing particular weakness. From the altcoin’s perspective, there’s a negative backdrop due to an ongoing lawsuit against the decentralized crypto exchange FTX. Its founder Sam Bankman-Fried has been in court since October 2023 due to alleged fraud and other serious accusations. Solana is still associated with FTX, which is why the proceedings are also affecting the SOL price.

No Positive Trend Reversal in Sight

The current BTC quotes at just above 34,000 US dollars can thus far hardly prevent that the market mood could take a similar course to that in 2022. At that time, the industry was plunged deeper into a crisis by bankruptcies and the collapse of Terra (LUNA). As optimistic as the fundamental data may look to some market observers, the pessimists clearly hold the reins at the moment. Sensible risk management that includes future losses is therefore considered essential.