$BTC - BITCOIN DROPS, DRAGS MARKET DOWN !!!
The cryptocurrency market is clearly facing challenges in its upward movement, as historic peaks are leading to increased selling activity.
On Friday morning, the overall capitalization of cryptocurrencies reached $4.03 trillion, marking a 3.4% decrease in just 24 hours.
Bitcoin dropped to $117K on Thursday, initiating a chain reaction that negatively impacted the entire cryptocurrency market.
This further illustrates the rising selling pressure shortly after new historic highs were reached. We believe that the well-coordinated actions of sellers may be a disguise for strategic but plentiful buying on price dips. It is crucial to sound the alarm if the price falls below the 50-day average at $115K and the recent low area around $112K.
The Ether surge is surpassing Bitcoin's rise as it shows a stronger correlation with US stock markets compared to Bitcoin. Specialized exchange-traded funds centered on Ether drew in $1.7 billion in August.
In contrast, Bitcoin ETFs experienced an outflow of $436 million during the same timeframe. The holdings of crypto treasuries utilizing Ether increased to $17 billion.
The top cryptocurrency is confronting significant rivalry from Ethereum. The passing of the stablecoin bill by the US Congress has paved the way for the widespread acceptance of these tokens, with around half of them operating on the Ethereum blockchain.