Based on past Q4 figures, traders are expecting that a fall in the price of Bitcoin could cause further losses for the altcoin market.
Traders are expecting a slow fourth-quarter for the price of Bitcoin and the altcoin market as well. Specifically, technical analysts are observing the Bitcoin dominance index to alert against a fall in the altcoin market.
Over the past weeks, the price of Bitcoin has not changed significantly. However, traders are expecting a “slow fourth-quarter” for the top digital asset.
Traders Predict a Boring Quarter for Bitcoin and Altcoins Price
Between September 9 and 11, Bitcoin’s price surged from $9,981 to $11,179. While Bitcoin recorded gains, Cointelegraph reported that altcoins remained in a steady loss and DeFi tokens also plunged. The report also revealed that a further loss in Bitcoin price could affect altcoin, leading it to further decline. Notably, BTC has dropped nearly 6% to $10,500 over the last 15 days.
In addition, another report also showed that some altcoins and DeFi tokens fell 30% to 60%.
A Cointelegraph contributor Michael van de Poppe commented on the recent slump in the price of Bitcoin. The contributor said the current loss might not end soon. In a tweet, van de Poppe posted a chart and added:
“I do believe we’ll be seeing a relatively boring and corrective quarter on the cryptomarkets. In history, ETH frequently bottoms out in December, to start running the quarter after. BTC dominance to run up, to have an altseason in Q1 2021….”
Furthermore, another trader, “Loma” pointed out that the last time there was a fall in altcoin prices, Bitcoin also fell significantly within a short period. However, although altcoins have been dropping recently, BTC and Ether have remained stable. Loma said:
“ALT’s dumping right now while Bitcoin barely moving. Last time I saw that, Bitcoin painted a fat down candle.”
Challenges Surrounding the Crypto Market
Since the previous month, the crypto market has faced several challenges. On the 26th of September, hackers stole $281 million from the KuCoin exchange. KuCoin Global CEO Johnny Lyu announced that the hack affected the firm’s Bitcoin, Ether, and ERC20 hot wallets. Following the hack, the price of Bitcoin and other affected assets barely moved.
After the KuCoin hack, the firm has been making efforts to recover the stolen funds. Now, Johnny Lys has revealed that the trading platform has recovered $204 million in crypto assets. In addition, the CEO said the police are involved and the suspects have been found.
Shortly after the hack, the U.S. Commodity Futures Trading Commission (CFTC) charged BitMEX with violating the Bank Secrecy Act. The U.S. Department of Justice made the announcement on the 1st of October. Also, market experts believe that news of U.S. President Donald Trump’s COVID infection caused a stir in the traditional and crypto markets.
Considering the ongoing uncertainties and events in the crypto space, a famous trader, “Byzantine General,” said it is a “perfect moment to blast up and leave all the weak hands behind.”
Specifically, Byzantine General noted BitMEX’s legal issues, Trump’s COVID-19 positive status, and “funding already negative.”
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.