Fear is grappling the crypto market and investors are hesitant to take risks. Ethereum supply drains out, while Altcoin Season Index drops and Bitcoin crashes below $110K. With Bitcoin prices falling and Altcoin Season Index falling, the crypto community is confused, as they find it hard to gauge what season it is–Bitcoin or altcoin. Its not just that but there’s more happening, keep reading to find out.
Community is confused over the market status
CoinMarketCap’s Altcoin Season Index (ASI), which gauges the crypto season, whether Bitcoin season or altcoin season, has fallen to 68 from 77–altcoin territory. The 75 level is the threshold on the ASI scale, for altcoin season; however, the crypto community is in a state of confusion as to whether funds are flowing into altcoins or if it’s just another swing
Ethereum supply drains out
Ether holdings on centralized exchanges have dropped to their lowest point since 2016, driven by growing institutional accumulation. As of Thursday, the exchange balance is down to 14.8 million ETH. Exchange balance has steadily shrunken since mid-2020, with the available supply of Ether (ETH) cut by around 50% over the past two years.
Fear and Greed Index hits fear zone
CoinMarketCap’s Fear and Greed Index falls to the 32 fear zone from last week’s 52, which was neutral. A Fear and Greed Index score of 32 indicates that the market is currently in a fearful state, though not at panic levels. This suggests that investors are cautious, risk appetite is low, and many may be pulling back from aggressive buying.
Bitcoin drops below $110,000
Bitcoin dropped to its lowest level in over three weeks, triggering $275 million in liquidations of leveraged bullish positions. Traders are questioning whether the looming $22 billion BTC options expiry on Friday explains the dip below $109,000 and if professional investors anticipate further price declines.
Tether minted 1,000,000,000
Tether just dropped a massive $1,000,000,000 USDT mint on the Ethereum ($ETH ) chain, signaling a huge injection of liquidity into the crypto markets.
300 financial firms launch digital pound
A group of 300 financial service firms in the United Kingdom collaborated on a pilot project of tokenized sterling deposits. Named as the ‘UK Finance’, the pilot phase for the tokenized deposits project began after collaborating with six major banks operating in the UK, including Barclays, HSBC, Lloyds Banking Group, NatWest, Nationwide, and Santander. With this partnership, the coalition will aim to provide a digital representation of traditional British pound commercial bank money, it announced on Friday.
More than $1.5 billion liquidated
On September 25, about $1.66 billion worth of positions were liquidated. Among these were more than $107 million in short positions and $1.095 billion in long positions that were liquidated. However, compared to yesterday, today the liquidations dropped, with short position liquidations hitting just above $88 million, while the long position liquidations reached almost $108 million.
Vanguard to offer its platform for crypto ETFs
Vanguard, the world’s second-largest asset manager, has intentions of allowing access to crypto ETFs on its brokerage platform. According to people familiar with the matter, Vanguard does not have plans of launching its own ETF like BlackRock, however, it will allow its brokerage customers to select third party crypto ETFs, on its platform.
WLFI will buy back its tokens
In an attempt to maintain the prices, WLFI, the token for World Liberty Financial (a crypto project backed by the Trump family), officially consented to buying back its token with the proceeds from its liquidity pools. Once acquired, the tokens will be sent to burn addresses, which will cut them off from the circulating supply.
Going back to the confusion in the market, it will not remain for long. Although the ASI has fallen below the altcoin territory, it does not necessarily mean that the altcoin season is over. Since volatility is high during these times, funds will keep moving across altcoins and Bitcoin, and this could fluctuate the ASI. Hence, investors and traders may need to be wary of this falls alarms.Â
