The following article, Cryptocurrencies Decline Amid Israel-Hamas Attack, Adding Geopolitical Risk To Fragile Market, was first published on Flag And Cross.
Major cryptocurrencies experienced a decline on Sunday evening, amid the attack on Israel by Hamas. This event has introduced geopolitical risk into an already delicate market grappling with inflation and surging interest rates.
Bitcoin, the largest cryptocurrency by market capitalization also declined due to the announcement of the U.S. economy adding 336,000 jobs in September, surpassing economist expectations by nearly double.
The Israeli-Palestinian conflict has reached a critical point, escalating into a full-blown war following an unexpected invasion by Hamas. Israeli Prime Minister Benjamin Netanyahu has vowed that the group, which rules the Gaza strip, will face unprecedented consequences. Meanwhile, global crude reserves are facing pressure due to production reductions by Saudi Arabia and Russia.
Pierre Andurand, founder of Andurand Capital Management LLP, believes that in the short term, the conflict is unlikely to impact oil supply. However, experts warn that it could eventually lead to supply disruptions and price fluctuations.
The global crypto market cap currently stands at $1.09 trillion, reflecting a decrease of 0.10% in the past 24 hours.
Stock futures experienced a decline on Sunday due to the attack on Israel. This unfortunate event has introduced additional geopolitical risk to an already delicate market, which is currently grappling with inflation and surging interest rates.
Futures linked to the Dow Jones Industrial Average dropped by 207 points, equivalent to a 0.6% decrease. Similarly, S&P 500 futures experienced a decline of 0.7%, while Nasdaq 100 futures slipped by 0.6%.
Crypto analyst Michael Van de Poppe anticipates a week filled with volatility in the market. According to him, it is likely that Bitcoin will continue its upward grind, potentially surging to $30K “as worldwide uncertainty grows.”
Pseudonymous analyst CediBull remains firm in their idea shared below, with a target of at least $27,100 and a high probability of testing the mid-range at $26,700. Taking a step back for a broader perspective, there is a significant amount of liquidity accumulated below us, accompanied by rejection wicks to the upside.
Additionally, Open Interest (OI) has reached its peak, which historically has signaled a local top in the past five out of five instances.
The overall direction seems clear in my opinion, but the key question is how far the price will drop. It is important to remember that the long-term outlook is still bullish, and breaching $24,800 is not anticipated.
“I believe we may test the mid-range, and if it holds, we could experience an early bottom. However, there is also the possibility of a swift dip below $26,000 (but remaining above $24,800), which could present an excellent opportunity for a low-risk, high-reward entry once again,” said Pseudonymous analyst CediBull.
Benjamin Cowen predicts a prolonged decline in ETH / BTC .”Collapse continues. It has been a pretty slow process so far (certainly slower than I was expecting), but the trend has in fact been down for a long time,” said Benjamin Cowen on the decline in ETH / BTC.
On-chain analytics firm Santiment reported that “The movement of over 10K $BTC off exchanges is the highest since September 7, indicating a significant shift in the Bitcoin market. Additionally, Bitcoin, the leading cryptocurrency, is making a second attempt to surpass the $28K market value. The importance of utility cannot be overlooked, especially considering that unique addresses have reached their lowest point in six weeks,” said On-chain analytics firm Santiment.
© 2023 Zenger News.com. Zenger News does not provide investment advice. All rights reserved.
Produced in association with Benzinga
Edited by Miriam Onyango and Newsdesk Manager