The global crypto market cap is down by 1.34%, hovering around $2.18 trillion, with an FGI of 41 points for neutral sentiments. Some of the top cryptocurrencies are showing a downward trajectory. This includes BTC and ETH, among others. Both are down by over 1.6% and 2% in the last 24 hours.
The primary reason for this decline is that Chinese investors are ditching cryptocurrencies to favor their national stock exchange. Assets on the stock exchange are on the rise, and they are willing to make profits from that segment instead of hanging around digital assets, which are associated with higher volatility.
Bitcoin and Ethereum Fall Amid Panic Buying
Yesterday’s crypto market momentum highlighted a surge in BTC and ETH as the global crypto market surged. Ethereum outperformed Bitcoin, increasing by 3.16% to $2,493.71, while Bitcoin traded at $63,624.99, showing signs of recovery after its recent decline.
This market uptick was influenced by the UAE’s decision to exempt cryptocurrency transfers from value-added tax and the introduction of collective supervision for virtual asset service providers. Forecasts remain optimistic, with the BTC forecast predicting Bitcoin to reach $80,000 by the end of October and Ethereum anticipated to surpass $4,000 by year-end.
However, the market faced a sudden shift as Bitcoin dropped by 1.54% to $62,463.50, and Ethereum declined by 2.39% to $2,425.99 in the last 24 hours. Analysts attribute this decline to a shift in investment focus towards the Chinese stock market. Livio Weng, CEO of Hashkey, described the situation as panic buying, where traders quickly exchange their crypto holdings back into fiat currency.
Laura Vidiella del Blanco, Head of MNNC Group, noted a trend in reallocating investments to Chinese stocks, primarily driven by individuals familiar with Asian markets. While not exclusively pointing to Chinese investors, she emphasized that these traders employ diverse strategies beyond just investing in digital assets.
Meme Coins Replicate the Trend
Altcoins did not absorb the trend of panic buying. They ended up mirroring that trend by a larger margin. For instance, Dogecoin fell by 5.01%, now exchanging hands at $0.108, registering one of the biggest declines in the meme coin segment. Shiba Inu plunged over 5.9% to list at $0.0000173. Its market cap has jumped to over $10.19 billion. The gap between the top meme coin, DOGE, is narrowed.
However, a dip in their values could potentially contribute to a later-speculated rebound. New projects are expected to go to the market to cause price explosions. Crypto All-Stars has raised capital worth $2 million as a universal staking platform for all meme coins. Similarly, Flockerz raised approximately $450,000 in a few weeks during the presale.
Other Gainers and Losers
Tether’s USDT is in the limelight. Investors are incorporating the stablecoin into their portfolios as a protective measure against potential future declines.
SOL is down by 3.62%, and XRP has shed almost 2.03% of its token value, now listed at $0.5296. Tron’s TRX is among a few tokens that have gained value. It is up by 1.18%, exchanging hands at around $0.1559. Cardano’s unexpected decline of 3.21% in ADA is a surprise.
NEIRO has made significant gains. It has surged by 13.51% to a value of $0.001658. It is only safe to say that NEIRO is the top gainer in the meme coin segment at a time when declines are returning with uncertainty about the next high.
Conclusion
Whales are expected to hold on to their tokens, potentially accumulating more until they reach a lower value. Bitcoin and Ethereum can reverse the trend in the next few days if flows in their respective ETFs take a firmer grip.
Disclaimer: Values were true at the time this article was written. This content is not investment advice.
