Bitcoin (BTC) remained lower at the November 7 open on Wall Street as it opened with flat equity performance on the eve of US midterm elections.
Cryptocurrencies battling the FTX crisis
Data from Cointelegraph Markets Pro and TradingView shows that the BTC/USD pair is trading near $20,600, a three-day low at the time of writing.
Volatility is expected around the mid-term elections and the week-end October Consumer Price Index (CPI) release.
An additional hurdle added to the market’s cold feet as controversy over the FTX trading platform added to the market’s cold feet, with commentators cautioning the development of unnecessary losses.
“This whole thing is incredibly bad for the industry, and especially for the retailer,” Abbreviation Popular trader and analyst Pantoshi.
“Retail is what pays for it when war breaks out. But it can also end with unintended consequences. It is ominous to see.
Bitcoin has fallen overnight following comments by Changpeng Zhao, CEO of the world’s largest stock exchange Binance, confirming that the exchange will dump the FTX token.
William Clemente, co-founder of cryptocurrency research firm Reflexivity, offered a silver lining in the form of greater value for decentralized exchanges (DEXs) in the future.
“Just as centralized crypto lenders’ risk mismanagement earlier this year set up a bull case for DeFi, this centralized exchange drama is also setting up a bull case for DEX.”, tweetedReferring to Terra’s LUNA debacle and related repercussions.
Taking a look at the top ten cryptocurrencies by market cap, the day had a mixed performance, with a strong 24-hour loss for Solana (SOL), down 12.4%.
Going back to bitcoin Crypto trader Il Capo was close to the current theory of $21,500, which marks an impending local high, which will be followed by another serious drop.
“Burn 21,500 more. Do this”, wrote that day.
That theory included a macro short target of $14,000, in contrast to other forecasts that forecast $30,000 in a matter of weeks.
Analyst: DXY “Key to Everything”
Meanwhile, the S&P 500 and the Nasdaq Composite Index were both flat ahead of the midterm elections.
The US Dollar Index (DXY), which is busy attempting to recover from last week’s losses, hovered around 110.5 at the time of writing, unable to find any upside momentum.
checking with Accuracy Raul Pal, founder and CEO of Macro Markets, a global macro investor, called the dollar’s weakness “the key to everything right now”.
“We are not entirely sure that we cannot make one last push towards 117, but we are approaching a peak,” the researcher said.
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