Crypto Bull Run Delayed? $200B Wiped Out Amid Global Tensions
Qadir AK4 Oct 20242 min read
After raising hopes for a bullish run in September, the cryptocurrency market has entered the fourth quarter with a sharp downturn. In the last three days, the market, led by Bitcoin (BTC) and Ethereum (ETH), has lost over $200 billion in value.
This negative trend is largely driven by rising geopolitical tensions, especially in the Middle East and between Russia and the West. On top of that, the U.S. SEC continues its tough stance on crypto regulation, as shown by its recent appeal in the Ripple case.
With the market trapped in bearish conditions for the past seven months, traders are now wondering if the October rally they expected has become what some call “Rektober.” Many believe that a market reversal may be near.
Signs of a Possible Rebound?
Despite the current bearish sentiment, some indicators suggest that a turnaround could be coming. Market analysis firm Santiment reports that low optimism among traders could mean that a major rebound is just around the corner. This pattern has happened before during market lows.
A Look Into the Fed’s Policies
While many traders have become pessimistic about money printing, the fundamentals may show a different outlook. Federal Reserve Chair Jerome Powell recently said the September rate cut was the right move and hinted that more cuts could be on the way. These actions might add liquidity to the market, supporting crypto prices.
How Crypto Could Shape the 2024 Elections
As the 2024 U.S. elections approach, cryptocurrency is expected to remain a key issue. Both political parties are looking to appeal to over 50 million voters who have investments in Web3. How regulators and policymakers address crypto could have a big impact on the market.
Bitcoin Technical Analysis
The market may stay in bearish territory until whale investors stop selling off in secondary markets and start accumulating again. Technically, Bitcoin’s price could drop to $52k, which might spark further declines in altcoins unless it consistently closes above $71k soon.
