The cryptocurrency markets still have trouble after failing to hold support last night, adding to the downward pressure this Wednesday. With a price of $19,103, bitcoin is still trading below the $20,000 mark. Ethereum is currently trading at $1,294 and below the $1,300 mark. As the global markets continue to suffer in October, the short-term outlook for cryptocurrencies is still bearish this week.
Key Notes:
- The cryptocurrency markets are still trending downward, with BTC and ETH failing to retain support.
- Yuga Labs is the subject of an SEC investigation regarding possible securities law violations.
- Through Coinbase, Google Cloud will begin to accept cryptocurrency payments for a limited number of services.
- Price and trade volume declines point to a possible price reversal this or the following week.
- At 20 points today, the Fear and Greed Index is still very high.
Cryptocurrency General Market News Update
The day’s main story is the SEC’s investigation into Yuga Labs, which may also add to the pressure on cryptocurrency markets to decline. According to a Coindesk story, the SEC is looking into a possible securities law violation at Bored Ape Creator Yuga Labs.
In particular, the SEC is investigating ApeCoin’s issuance to see whether allocating 15% of the token’s supply to NFT holders qualifies the cryptocurrency asset as a security. The SEC is closely examining NFTs and cryptocurrency exchanges in the market to determine whether the new types of digital assets and services are subject to its jurisdiction.
After accusing Kim Kardashian of promoting unregistered cryptocurrency securities and fining her over $1.2 million for a single Instagram post, the SEC has been in the news quite a bit this month. The SEC deemed Kim Kardashian in breach of anti-touting laws after she failed to disclose her $250k payment for the marketing.
Policymakers and legislators are using the bearish market as a chance to learn more about Web3 and are aiming to actively participate in regulating the various firms.
The other but more encouraging news is that Google Cloud has begun using Coinbase to take Bitcoin, Ethereum, and Dogecoin. The integration of Coinbase Commerce is the first step in Google’s integration of cryptocurrency payments for its services, even though the option of payments via cryptocurrency will only be accessible to a small number of users.
According to information from Decrypt:
“CNBC also reported that there “wasn’t a guarantee” that Google would stick with Coinbase for payments processing, and there’s competition from a newly crypto-integrated PayPal business service.”
Bitcoin And Ethereum News Update
This Wednesday, the prices of Bitcoin and Ethereum are still decreasing; BTC is now at $19,000, and ETH is now below the $1,300 support level. Additionally, the trade volume is falling for both digital currencies, down 14% for ETHUSD and 9% for BTCUSD.
Look at this trade probability pattern provided on Quora by Souradeep Dutta, a CFA:
A decline in both price and volume is bullish and could lead to a price reversal. This suggests that the market may reach a bottom this week and then rebound beyond $20k for bitcoin and above $1,300 for ether.
With today’s level of 20 being the lowest this month, the fear and greed index for cryptocurrency markets is still very high.
While crypto asset prices are still being driven lower by the bears, this month presents a great chance to dollar-cost average long-term holdings and purchase NFTs and undervalued assets.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any service.
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