News recap: increasing bearish FUD sentiments in the crypto market

Crypto market in numbers

Since 7th of September, the cryptocurrency market capitalization fell by 3.7% to $1.03 trillion, according to CoinMarketCap data. Starting on the 12th, the figure began to recover and increased by 6.4% to $1.06 trillion. It’s worth noting that the capitalisation returned to the consolidation zone observed in mid-August.

Trading activity remained relatively stable. Between 7th-21st September, the average daily volumes mostly ranged from $25 billion to $30 billion. Trader activity in the cryptocurrency market is still at a low level, a trend that has persisted since July 2023.

The cryptocurrency Fear and Greed Index has returned to the “Neutral” zone. Between 7th-19th September, the index did not rise above 46 points, but on the 20th, it crossed the 47-point mark and settled in the “Neutral” zone.

Cryptocurrency volatility is decreasing again. The 30-day volatility index for BTC fell by 32% since 7th of September, from 1.75% to 1.19%. A similar metric for ETH dropped by 25%, from 1.4% to 1.05%.

The cryptocurrency market managed to recover somewhat after significant FUD and panic among short-term traders. The market capitalisation held at the $1 trillion mark. Bitcoin’s dominance exceeded 50% as investors preferred to accumulate Bitcoin, while altcoins faced noticeable selling pressure. The market’s primary concerns are focused on the court’s decision regarding the sale of cryptocurrencies from the FTX balance.

Cryptocurrency volatility remains historically low, with expectations of a return in mid-October. It is during this period that the SEC will report its decision on spot Bitcoin ETFs.

The impact of economic factors on cryptocurrency prices has also decreased significantly. The cryptocurrency market reacted sluggishly to consumer inflation data and the Federal Reserve’s interest rate announcement.

Most traded coins (7th – 20th September)

Top crypto market driving factors

Overall crypto market

▼ 08.09.2023 – According to Coinglass data, long positions worth $23.57 million were liquidated in the cryptocurrency market within 6 hours.

▲ 08.09.2023 – According to RootData, the volume of funds raised by crypto firms through investment rounds in August increased by 39.8% compared to July.

▼ 11.09.2023 – Trading volumes on centralised cryptocurrency exchanges hit a minimum equivalent to $9 billion, the lowest since November 2020.

▼ 11.09.2023 – Santiment notes increased bearish FUD sentiments in the cryptocurrency market.

▼ 12.09.2023 – Analysts at Matrixport suggest that the altcoin crash was triggered by the sale of FTX assets.

▲ 12.09.2023 – PayPal added an Off-Ramp feature for converting digital assets into US dollars directly through wallets.

▼ 13.09.2023 – Consumer inflation in the United States in August was 3.7% (expectations – 3.6% / July – 3.2%).

▼ 14.09.2023 – The first week of asset sales from the FTX exchange balance is limited to $50 million, with a weekly limit of $100 million for all other sales.

▼ 15.09.2023 – The main topic of discussion in the cryptocurrency market is the court’s decision to allow the sale of cryptocurrencies from the FTX balance.

▲ 18.09.2023 – BTC and ETH withdrawals have been resumed. At the same time, there are inflows of USDT on exchanges.

▲ 19.09.2023 – Tether has issued an additional 1,000,000,000 USDT.

▼ 20.09.2023 – The SEC will intensify its pursuit of crypto companies and DeFi projects.

▼ 20.09.2023 – In aggregate, whales currently hold fewer stablecoins on their balances, which is historically a bearish signal.

Bitcoin (BTC)

▼ 08.09.2023 – Approximately 5,000 BTC worth around $128.5 million were sent to exchanges in the last 24 hours.

▲ 11.09.2023 – Long-term bitcoin holders have reached a historical high, owning 75% of the supply.

▼ 11.09.2023 – The use of the Lightning Network has decreased by 84% compared to the previous year.

▲ 12.09.2023 – The proportion of bitcoins that haven’t moved for at least 5 years is 29.64%.

▼ 12.09.2023 – Due to abnormal heat in August, Marathon Digital Holdings generated 1072 BTC, which is 9% less than the July figure.

▼ 12.09.2023 – Bitcoin’s volatility, liquidity, trading volume, and on-chain transaction value are at historical lows.

▲ 13.09.2023 – Activity on Bitcoin network addresses has reached a 5-month high.

▼ 13.09.2023 – Bitcoin is experiencing profit-taking amid a price rebound.

▲ 18.09.2023 – Bitcoin’s dominance has exceeded 50% amid the “altcoin slumber.”

▲ 18.09.2023 – The supply of bitcoin held by long-term holders has increased to a record 75.8% of the total.

▲ 19.09.2023 – Due to another mining difficulty adjustment, Bitcoin’s mining difficulty increased by 5.48%. The measure reached a maximum of 57.12 T.

▼ 19.092023 – Almost all short-term Bitcoin investors are in “paper losses,” leading to changes in sentiment.

▲ 20.09.2023 – In September, the average number of active BTC addresses per day reached 1.1 million, the highest since April.

Ethereum (ETH)

▲ 08.09.2023 – There is a surge in discussions about ETH.

▼ 10.09.2023 – Unknown individuals gained control of Vitalik Buterin’s X-account and posted a phishing scam. Subscribers lost nearly $700,000, including 2 NFT CryptoPunks.

▼ 11.09.2023 – Ethereum became inflationary due to reduced fees.

▲ 14.09.2023 – Ethereum hopes to create an independent technology stack capable of competing with Google and Twitter.

▲ 15.09.2023 – Ethereum developers launched the publicly available Holesky testnet, intended to replace the Goerli testnet in operation since 2019. However, the team encountered problems at the start.

▲ 15.09.2023 – The supply of ETH has decreased by almost 300,000 coins since the Merge upgrade.

▼ 18.09.2023 – Ethereum developers failed to launch the Holesky testnet and scheduled a new attempt in two weeks.

▲ 19.09.2023 – Ethereum developers proposed the ERC-7512 standard, aimed at enhancing the security of Ethereum smart contracts through additional on-chain verification.

▲ 19.09.2023 – Grayscale Investments submitted a proposal to the SEC to launch an exchange-traded fund based on CME-traded ethereum futures.

Ripple (XRP)

▲ 08.09.2023 – Ripple completed a deal to acquire cryptocurrency-focused trust company Fortress Trust.

▼ 11.09.2023 – The SEC appealed the judge’s partial non-securities designation decision regarding XRP, which Ripple Labs had won.

▲ 20.09.2023 – According to Kaiko, XRP remains the top altcoin in terms of trading volume on U.S. exchanges.

▲ 20.09.2023 – Ripple plans to transform the e-commerce sector using its technologies.

Toncoin (TON)

▲ 13.09.2023 – The TON Foundation announced the integration of the TON Space cryptocurrency wallet into Telegram.

▲ 13.09.2023 – Telegram will provide priority access to TON projects on the Telegram Ads global advertising platform.

▲ 15.09.2023 – The TON Foundation and Telegram announced their collaboration to create the TON Web3 ecosystem and promote it among the messenger’s audience.

▲ 19.09.2023 – Over the past month, the price of TON has significantly increased, leading to a sevenfold growth in active TON addresses on the Ethereum network.

Solana (SOL)

▼ 13.09.2023 – The number of active users on Solana dropped to a two-year low.

Polkadot (DOT)

▲ 19.09.2023 – USDC was launched on the Polkadot network.

Cosmos (ATOM)

▲ 14.09.2023 – Cosmos developers integrated a liquid staking module into the central blockchain of the Cosmos Hub ecosystem during the network update to version v12.

▲ 18.09.2023 – The company presented an updated roadmap for the Inter-Blockchain Communication Protocol (IBC).

Pepe (PEPE)

▼ 09.09.2023 – Representatives of the PEPE meme project reported that an administrator’s account in the Telegram group had been hacked. The unknown intruder also gained access to an account associated with the coin in X.