- The crypto market suffered a significant decline as Bitcoin fell below $61,000 and Ethereum fell 2%, partly due to a transfer of 7,000 ETH linked to the PlusToken scam, which again sparked cries of a sell-off.
- At the same time, US stock markets hit new highs as the S&P 500 closed at a record high and the Nasdaq rose 0.6%.
- The Fed’s latest meeting reveals a divide among members, with some favoring a 0.25% rate cut while others favor a more cautious approach. This led traders to adjust their forecasts, who no longer expect a major rate cut in November.
The crypto market has shown signs of weakness in recent hours, p significant drop in bitcoins under $61,000 aa the fall of ethereum by 2%. These market movements contrast sharply with the performance of US stocks, which simultaneously hit new highs.
Sales pressure associated with PlusToken?
Last bitcoin price drop can be partly explained by the significant movements of cryptocurrencies linked to the Chinese ponzi PlusToken. The news revealed it 7000 ETH (or approximately US$16 million) of assets seized by Chinese authorities in 2020 were transferred to exchange platforms. This massive transfer has reignited fears of selling these assets and created potential selling pressure in the market. Really, 540,000 ETH ($1.3 billion) are still in the hands of the authorities.
We remind you that in November 2020 the Chinese authorities seized almost 4 billions of dollars in cryptocurrencies – from that BTC, ETH, DOGE AND XRP – in connection with a ponzi scheme PlusToken. The liquidation of these holdings could have a significant impact on prices if significant volumes were sold in the market. Investors are therefore particularly attentive to any additional movement of these funds.
Traditional markets are growing despite uncertainty about interest rates
Unlike the crypto market, US stocks had a positive day. THE The S&P 500 closed at a new all-time highwhile the tech-focused Nasdaq rose 0.6%. U.S. 10-year Treasury yields rose to 4.08%, their highest level in two months, as investors digested minutes from the Federal Reserve’s latest meeting.
The document reveals that most of the members The Fed supports deeper rate cutsalthough some lean towards a more conservative approach with a 0.25% reduction. That led traders to reassess the chances of another rate cut in November, with a 21% chance the Fed will leave rates unchanged at its next meeting, up from 0% last week. Hopes for a 0.50% cut have all but disappeared.
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