After failing to hold support last night, cryptocurrency markets continue struggling, adding to the downward pressure this Wednesday. With a price of $19,103, bitcoin is still trading below the $20k mark. Ethereum is also below $1,300 currently, trading at $1,294. Since the world markets are still experiencing difficulties in October, the short-term outlook for cryptocurrencies is still bearish this week.
Summary:
- With BTC and ETH failing to hold support, cryptocurrency markets continue to trend downward.
- The SEC opens an investigation into Yuga Labs for possible securities law violations.
- Regarding some services, Google Cloud will begin accepting cryptocurrency payments through Coinbase.
- A possible price reversal for this or next week is likely due to the declining price and trade volume.
- The Fear and Greed Index is still at a very high 20 points.
General Market News
The SEC’s investigation into Yuga Labs is the day’s big news, and it may also add to the bearish pressure on the cryptocurrency markets. The SEC is looking into the Bored Ape Creator Yuga Labs over a possible breach of securities laws, according to a Coindesk report.
The SEC is specifically investigating the issuance of ApeCoin and whether allocating 15% of its supply to NFT holders qualifies the cryptocurrency asset as a security. To determine if these new types of digital assets and services fall under its jurisdiction, it appears that the SEC is taking a closer look at NFTs and cryptocurrency exchanges in the market.
The SEC has been making the headlines quite a bit this month after accusing Kim Kardashian of promoting unregistered cryptocurrency securities and fining her more than $1.2 million for a single Instagram post. The SEC saw Kim Kardashian’s failure to disclose her $250k payment for the marketing as a breach of anti-touting regulations.
Policymakers and legislators are using the bearish market as a chance to learn more about Web3 and to consider taking an active role in regulating various sectors within the cryptocurrency and blockchain industries.
Otherwise, some happier news is that Google Cloud has begun using Coinbase to take Bitcoin, Ethereum, and Dogecoin. Although just a small number of users will have access to the feature of cryptocurrency payments, Google’s integration of Coinbase Commerce is the first step in the integration of cryptocurrency payments for its services.
“CNBC also reported that there “wasn’t a guarantee” that Google would stick with Coinbase for payments processing, and there’s competition from a newly crypto-integrated PayPal business service.” Decrypt reports.
Bitcoin And Ethereum News Update
This Wednesday, the values of Bitcoin and Ethereum are still plummeting, with BTC falling to the $19,000 range and ETH going below the $1,300 support level. The trade volume for both crypto assets is also falling, down 14% for ETHUSD and 9% for BTCUSD.
View the trading probability pattern that Souradeep Dutta, CFA, posted on Quora:
A drop in price and volume is a bullish indicator that can initiate a price turnaround. This suggests that the market may bottom out later this week before rising above $20k for bitcoin (BTC) and $1,300 for Ethereum (ETH).
The crypto market’s fear and greed index is still very low, with today’s reading of 20 being the lowest this month.
Even though the bears are pushing crypto assets lower, this month is an excellent time to dollar-cost average long-term holdings and buy NFTs and undervalued assets.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any projects.
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