Bitcoin retests $60,000 ahead of big week for financial markets

BITCOIN'S foray above the $60,000 level was short-lived, as the market cap leader slid 2% overnight, trading at around $58,900 this morning.

This marks the third time in a month that Bitcoin has attempted to break above this critical price point but failed to hold ground. Ethereum has taken a steeper hit, falling 4% to around $2,300, signalling broader weakness across the crypto market.

Altcoins are largely mirroring Ethereum's pattern, with most in the red, except for Fantom, which is defying the trend, up nearly 4% in the last 24 hours. This divergence highlights varying dynamics within the crypto space, as Fantom seems to be benefiting from sector-specific drivers.

Interestingly, the crypto dip contrasts with the rally in US stocks last week, which surged on growing expectations that the Federal Reserve will announce its first rate cut in four years at Wednesday's meeting.

Historically, lower borrowing costs have been a boon for risk-on assets like crypto, but uncertainty over whether the Fed will deliver a 0.25% or a more aggressive 0.5% cut has led to caution in the market.

With a big week ahead in global financial markets, all eyes are on how the Federal Reserve's decision will impact both traditional and digital assets.

‍

In the Markets

‍

Total crypto market cap

$2.05 trillion (-2.14%)

‍

What Bitcoin did yesterday

Daily high $60,377 |  Daily low $58,717

‍

Bitcoin market capitalisation

$1.16 trillion (57.95% of market)

‍

Bitcoin 24-hour trading volume

$24.9 billion (+78%)

‍

SP500

+0.54%

‍

Fear and Greed Index

39 (Fear) 

The Fear and Greed Index measures volatility, market momentum/ volume, social media, surveys, dominance, and Google search trends to gauge market sentiment.

‍

Bitcoin Relative Strength Index (RSI)

41

Values of 70 or above indicate that an asset is becoming overbought and may be primed for a trend reversal or experience a correction in price, while 30 or below indicates an oversold or undervalued condition.

‍

Post Script…

‍

Cautionary Notes

It’s definitely tempting to get swept up in the excitement, but please heed these words of caution: Do your own research, only invest what you can afford, and make good decisions. The indicators contained in this article will hopefully help in this. Remember though, the content of this article is for information purposes only and is not investment advice or any form of recommendation or invitation. The Digital Commonwealth always advises you to obtain your own independent financial advice before investing or trading in cryptocurrency.

‍