Crypto Market Takes Pause as Bitcoin Falls Below $84K
The cryptocurrency market has taken a pause after experiencing a 15% rally since mid-September and a nearly 40% rise from its mid-August lows. The market capitalisation fell by 3% over the past 24 hours to $2.86T, with external factors such as a strengthening US dollar, spike in bond yields, and decline in share prices triggering profit-taking in cryptocurrencies.
Bitcoin encountered resistance at a former support level, falling below $84K on Wednesday. This pullback is likely a temporary pause rather than a reversal, given the ongoing uptrend. Bitcoin's price has decoupled from equities and gold, moving under its own catalysts such as increased liquidity, recovery in ETF demand, and short squeezes.
Investment activity picked up after BTC rose above the average entry price for ETF share buyers ($81.7K) for the first time since January, with inflows into US spot Bitcoin ETFs exceeding $1.7 billion over two days. The RWA market has entered a new phase, moving from simply issuing tokens to full-scale use of tokens in on-chain finance.
The Chicago-based exchange CME announced plans to launch futures on BCH and the UNI token from Uniswap on 19 October, causing Bitcoin Cash (BCH) and Uniswap (UNI) to surge. Despite the pullback, the bullish outlook for Bitcoin holds, with a decline to $70K not undermining its potential.