Weekly Cryptocurrency Update (Oct 02-09) – BTC, ETH, LTC, XRP and DOGE in the Spotlight
Arslan Butt • 5 min read
- Bitcoin failed to prolong its recovery of the previous day and began a bearish movement against the US dollar, from $55,700.
- Ethereum is gaining positive traction against the US dollar, near the $3,500 zone.
- Litecoin failed to stop its early-day losing streak and remained well offered around the 175.288 level.
- Ripple is currently at $1.06723, with a 24-hour trading volume of USD 2,915,072,905.
- Dogecoin has risen by 0.16% in the last twenty-four hours. The current market ranking is #8, with a live market cap of $38,384,210,776
Happy weekend, everyone. In this weekly cryptocurrency update, we are going to discuss all the major events that have impacted the crypto market over the past week. Our focus is going to be on the top 5 cryptocurrencies, including Bitcoin, Ethereum, Litecoin, Ripple and Dogecoin.
Weekly Cryptocurrency Update – Bitcoin (BTC/USD)
The BTC/USD failed to prolong its previous recovery and began a bearish movement against the US dollar, from $55,700. BTC is correcting downward, although losses continue to be supported at $53,000 and $53,200. The price remained bullish above the $52,000 resistance level. BTC broke above the $55,000 barrier level and settled above the 100 hourly simple moving average.
However, the price did not continue rising above the $55,700 level. Before the negative reversal, a high was formed near $55,770, then the price fell below the $55,200 support level. The price even went below the 23.6 percent Fib retracement level of the rising wave, from the low swing down to $50,365 ,to the high of $55,777.
BTC prices could continue to move down if they fail to clear the $55,000 resistance zone. On the lower side, the $53,500 continues to support Bitcoin. The first major support is now forming near the $53,100 level. At the same time, any further losses could open the doors for a move towards the $52,500 level. The next key support is near the $52,000 level.
However, the mild buying bias in the BTC prices was mainly sponsored by the positive remarks by Soros Fund Management, which was founded by billionaire investor George Soros, who has invested in Bitcoin. The CEO of the asset management company stated that Bitcoin is not just an inflation hedge, but has now crossed the chasm into the mainstream.
Bitcoin (BTC) has led a 35% rally this week, by rising far above the $50,000 resistance level and restoring the asset’s $1 trillion market capitalization. Thus, the recent bullish bias in BTC prices could also be attributed to institutional investors looking for a hedge to inflation. The re-emergence of inflation concerns among investors has renewed interest in using Bitcoin as an inflation hedge. As per the keywords, institutional investors seem to be returning to Bitcoin, possibly seeing it as a better inflation hedge than precious metals, like gold.
Weekly Cryptocurrency Update – Ethereum (ETH/USD)
The ETH/USD is gaining positive traction against the US dollar, near the $3,500 zone. The ETH price could start a fresh rally if it clears $3,600. The ETH/USD pair managed to extend its increase above $3,500, and remained well bid near the 3,576.67 level.
ETH even tested the $3,617.20 zone before correcting lower, similar to Bitcoin. Ethereum is now trading above $3,500, and the 100-hourly simple moving average. Ethereum could start a downside correction if it fails to continue higher, above the $3,600 and $3,650 resistance levels. The buying bias surrounding the ETH prices, on the other hand, was primarily fueled by reports claiming that the second-largest asset by market cap has seen increased support with the rise of decentralized finance in its ecosystem.
Applications of Ethereum have been seen as the primary force behind the growth of cryptocurrency. As a result, institutional and individual investors alike see the asset outgrowing the number one coin, Bitcoin, in the coming years.
On the opposite side, the buying bias in the greenback was considered one of the major factors that kept up the pressure on any additional gains in the ETH/USD pair. The broad-based US dollar maintained its bullish bias, remaining well bid on the day. However, the safe-haven dollar remained below a one-year high, as the risk sentiment improved.
The riskier Australian dollar traded near the three-week high that it hit during the previous session, when it gained 0.55% against its US counterpart.
Furthermore, the gains in the USD were bolstered by the recently released upbeat US economic releases, which showed that the world’s largest economy remains on track for a recovery.
Weekly Cryptocurrency Update – Litecoin (LTC/USD)
The LTC/USD coin pair failed to stop its early-day losing streak and remained well offered around the 175.288 level. However, the selling bias surrounding the LTC/USD pair could be attributed to less a positive sentiment in the crypto market. This can be witnessed by the mild bearish bias in the BTC prices.
The Litecoin is trading at $177.440, with a 24-hour trading volume of $3,656,965,841. Moreover, the LTC/USD has dropped by 1.4% in the last twenty-four hours. The market ranking is #16, with a live market cap of $11,946,790,640. Litecoin has a circulating supply of 66,752,615 LTC coins and a max. supply of 84,000,000 LTC coins.
The reason behind its downward rally could be the negative performance in the crypto market, which tends to undermine LTC. Furthermore, the losses could be long-lived, as the strong broad-based US dollar puts some further bearish pressure on the LTC/USD pair. The USD maintained its early-day upward bias and remained well bid on the day, owing to expectations that the Fed will begin tapering its bond purchases in November and raise interest rates in 2022.
This, along with an ongoing rise in US Treasury bond yields, played a significant role in underpinning the US dollar. Besides that, the gains in the USD were further bolstered recent positive US economic releases, which indicate that the largest economy in the world remains on track for a recovery.
Weekly Cryptocurrency Update – Ripple (XRP/USD)
The XRP/USD has failed to put a stop to its early-day bearish rally, drawing offers around the 1.07 level. The XRP/USD exchange rate is currently $1.06723, with a 24-hour trading volume of USD 2,915,072,905. Ripple has dropped by 0.75% in the last 24 hours, and it could continue to trade on a bearish track, as the fresh downside wave in the crypto market tends to have a negative impact on all cryptocurrencies, including Ripple. Furthermore, the bulls seem cautious about placing any strong positions, as the continued strength of the US dollar tends to undermine the XRP/USD pair.
Since the start of the day, the crypto market has been flashing red, and it has remained depressed, even after the latest development in the world’s largest cryptocurrency, Bitcoin. Soros Fund Management, which was established by billionaire investor George Soros, has investd in Bitcoin.
According to the CEO of the asset management firm, Bitcoin is more than just an inflation hedge: “I think it’s crossed the chasm to the mainstream.” Meanwhile, senior analyst Eric Balchunas from Bloomberg says there is a 75% chance that the SEC will approve a Bitcoin futures ETF this month. However, increased speculation that an exchange-traded product could finally be approved in the coming weeks was seen as one of the major factors that helped to limit further losses in th BTC prices.
Weekly Cryptocurrency Update – DOGECOIN (DOGE/USD)
The DOGE/USD coin pair extended its upward rally of the previous session, and it has been flashing green since the day started. The Dogecoin is currently trading at $0.244310, with a 24-hour trading volume of $2,222,896,193. Dogecoin has risen by 0.16% in the last twenty-four hours. The current market ranking is #8, with a live market cap of $38,384,210,776.
It has a circulating supply of 131,128,539,044 DOGE coins and there is no limit to the supply. Dogecoin’s buying bias was primarily sponsored after SHIB’s 400 percent gain refocused attention on dog-themed meme tokens, and this could be a signal that DOGE is approaching an equal-sized breakout.
As we all know, meme currencies were among the first to break out at the beginning of this year’s bullish rally, and big-name influencers, like Elon Musk and Mark Cuban, have contributed to fuelling a jump in the Dogecoin (DOGE) price. The progress of DOGE ultimately spawned the massive litter of dog-themed offshoots that now populate the meme coin pack.
This week, the pack was on the move again, after Shiba Inu (SHIB) marked a triple-digit breakthrough. Thus, DOGE appears to be poised to advance higher. The unexpected rise of Bitcoin (BTC), above $55,000, has played a crucial rolee in supporting the price.
Aside from Bitcoin’s recent breakout and optimistic announcements regarding development, the rise in meme currencies appears to have begun with Elon Musk tweeting a photo of a Shiba Inu puppy. These positive hints tend to have a bullish impact on the Dogecoin price action.
The gains could be fleeting or temporary, as the upturns in the broad-based US dollar were seen as one of the key factors preventing Dogecoin from gaining any ground. The US dollar is receiving support from the positive US data, which shows that the world’s largest economy is growing day by day.