Crypto News- Bitcoin Faces Volatility Amid Market Sell-Off and Political Uncertainty
Crypto News– Bitcoin (BTC) struggled to maintain its position above $65,000, dipping below $64,000 during Wednesday’s American trading hours. After briefly regaining $65,000, BTC settled around $64,500, down approximately 1% from the previous day. The CoinDesk 20 Index also saw a decline, dropping about 2.4%.
The halt in Bitcoin’s rally coincided with a sell-off in equity markets, where the tech-heavy Nasdaq index fell by 2.7% and the S&P 500 decreased by 1.3%. Joel Kruger, a market strategist at LMAX Group, noted that the cryptocurrency rally might stall if the stock market sell-off turns into a broader correction. However, he suggested that, over a longer period, Bitcoin might serve as a haven for investors moving away from stocks.
Political Developments Impacting Crypto Sentiment
The chances of President Joe Biden withdrawing from November’s election rose to 68% on the crypto-based prediction market platform Polymarket. This spike followed Biden’s announcement of his Covid-19 diagnosis on Wednesday. Biden had previously mentioned that he would reconsider running if he faced a significant medical condition. His campaign performance has been underwhelming, particularly in debates against Donald Trump, who is viewed as more favorable towards cryptocurrencies.
Bitcoin’s recent surge past $65,000 came in the wake of an assassination attempt on Trump, which was perceived as a potential boost to his chances of returning to the White House. The cryptocurrency market has been sensitive to Trump’s perceived electoral prospects.
Crypto Exchange WazirX Attack Causes Significant Losses
Several cryptocurrencies faced substantial losses following a malicious attack on the Indian crypto exchange WazirX. The exchange’s native token, WRX, dropped 15% to just over 14 cents, while the meme coin Shiba Inu (SHIB) fell nearly 10%. The attacker stole more than $230 million in customer funds, including $100 million in SHIB and $52 million in ETH.
Other tokens remained relatively stable in dollar terms but suffered significant losses when priced in Indian rupees. The bitcoin-rupee pair declined by 11% to 5.1 million rupees ($60,945), presenting a considerable discount compared to rival exchange CoinDCX. Additionally, the USDT-INR pair on WazirX fell by 8%.
Trending crypto chart today
- Global Notional Open Interest: CME’s share in the global notional open interest in standard futures markets tied to bitcoin and ether.
- BTC Futures: CME accounts for 83% of the total BTC futures open interest.
- ETH Futures: CME holds 65% of the total ETH futures open interest.
- Institutional Participation: The numbers indicate growing institutional involvement in the crypto market.
- Source: Data from Glassnode.
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