Why Crypto Market Is Down Today: Reasons You Should Know
Why Crypto Market Is Down Today: Latest News and Updates
Cryptocurrency Market Faces Downturn Amid Stock Market Decline
The crypto market is currently seeing a downward trend, closely following a similar slump in the stock market. On Wednesday, Bitcoin's price fell sharply by over 3.70% in the last 24 hours, settling around $65,000. In the past three days, Bitcoin has experienced a decline of more than 3.7% after reaching a 12-week peak of $69,487 on October 21. This dip has dampened the recent optimism of surpassing the $70,000 mark, which seemed attainable just a week earlier.
Bitcoin's Open Interest Hits New High
For the first time, Bitcoin's open interest (OI) on derivatives surged beyond $40 billion. On October 21, OI reached a record high as Bitcoin nearly broke past the psychological barrier of $70,000. This spike in OI suggests continued interest in Bitcoin trading, despite the recent pullback.
Bitcoin Pulls Back from Overbought Territory
Bitcoin’s recent rise above $69,000 pushed its daily Relative Strength Index (RSI) into overbought territory, hitting 70 on October 20. Following this, Bitcoin’s price saw a quick retreat to around $65,000. The Crypto Fear & Greed Index is also reflecting "greed" conditions at 69, signaling an elevated risk of a broader market correction.
Rising Bond Yields Weigh on Market Sentiment
The yield on the 10-year U.S. Treasury note has been on the rise, hitting 4.23%, a level last seen in July. Rising bond yields traditionally exert downward pressure on both equity and crypto valuations, contributing to the current market downturn.
Key Economic Events to Watch
Here are some upcoming economic indicators to keep an eye on:
- 8:30 AM ET: Initial Jobless Claims (Forecast: 243K, Previous: 241K) - This is a weekly metric that tracks new unemployment benefit claims.
- 9:45 AM ET: Manufacturing PMI (Forecast: 47.5, Previous: 47.3) - A measure of the manufacturing sector’s health.
- 9:45 AM ET: Services PMI (Forecast: 55.0, Previous: 55.2) - A snapshot of the services sector’s performance.
- 10:00 AM ET: New Home Sales (Forecast: 719K, Previous: 716K) - This metric assesses new single-family home sales.
These economic reports will provide insights into the broader economic landscape, potentially impacting both traditional and digital markets.
