Bitcoin
With prices falling to $35,800 as rising U.S.-China trade tensions scared world markets, Bitcoin Struggles Amid’s little respite rebound fell short this week. Rising to $38,900 on promises of Federal Reserve rate reduction, the bitcoin had climbed 12% in early October 2024; gains vanished when the US announced further taxes on $200 billion of Chinese imports, including semiconductors and electric vehicles. China responded with export limits on rare earth minerals vital for tech production, therefore inducing a flight from risk assets.
With Bitcoin’s dominance rate falling to 48% while altcoins suffered more severe falls, the crypto market capitalisation dropped $180 billion in three days. As proof of Bitcoin’s incorporation into conventional finance, analysts point to its growing link with tech stocks, now at a 90-day high of 0.82 against the Nasdaq. “Macro forces are guiding the movements of cryptocurrencies,” stated Lyn Alden, creator of Lyn Alden Investment Strategy. “Until trade tensions relax, volatility will rule.”
Market Fallout Escalates
Bitcoin Struggles Amid Citing national security issues, the U.S. announced 25% taxes on Chinese semiconductors, EVs, and solar panels on October 10, 2024. China replied by restricting gallium, germanium, and graphite exports—minerals essential for batteries and chipmaking. Globally, stocks fell; the S&P 500 dropped 3.2% and the Nasdaq lost 4.5%. Falling 8% to $35,800, Bitcoin matched the sell-off and its lowest since August.
Investors swarm classic safe havens. The U.S. Dollar Index (DXY) reached 107, a two-year high, while gold prices shot to $2,500/ounce. The inverse link of Bitcoin with the DXY grew to -0.65, exerting more pressure on prices. In the highest daily outflow since June, on-chain data shows whales sold 40,000 BTC ($1.4 billion) in 48 hours.
Bitcoin Faces Rejection
The rejection of Bitcoin Strgluges at $38,900 verified a bearish double-top pattern on daily graphs. Tested four times since July, the $40,000 resistance level stays a psychological barrier. Technical indicators grew dark: the Relative Strength Index (RSI) dropped to 32, indicating oversold circumstances, while the 50-day moving average crossed below the 200-day, a “death cross.”
Derivatives markets magnified the crisis. With financing rates negative across leading exchanges, Bitcoin futures open interest fell 18%. Using Coinglass data, almost $600 million in long positions were sold. “The market structure is fragile,” said CryptoQuant CEO Ki Young Ju. “Bitcoin could retest $30,000 without a macro catalyst.”
Altcoins Suffer Massive Losses
With Ethereum (ETH) falling 14% to $1,950 and Solana (SOL) collapsing 22% to $68, altcoins suffered terrible liquidations. Memecoins were hit hardest; Shiba Inu (SHIB) dropped 35%, and Dogecoin (DOGE) lost 30%. Three months of gains were wiped off as the overall crypto market capitalisation dropped to $1.4 trillion.
Outflows of stablecoins aggravated the liquidity crisis. With $5 billion in net redemptions—the most since FTX’s fall—Tether (USDT) and USD Coin (USDC) saw Lead by Aave and Uniswap, DeFi protocols lost $3 billion in total value locked (TVL). After Telegram included TON-based payments for its 900 million users, Toncoin (TON) became the only outlier, rallying 10%.
Bitcoin Miners Struggle
As sales reach two-year lows, Bitcoin Struggles Amid miners under increasing pressure. Down 40% from June, daily earnings per TH/s dropped to $0.058. This week, Marathon Digital and Riot Platform shares dropped 25%; both companies have stopped growing their businesses. As unprofitable miners turned off equipment, the network hash rate dropped 15%. Due October 24, the next difficulty change could drop 10%—a cost-cutting measure that indicates miner misery. “Capitulation is under progress,” stated Hashlab Mining CEO Jaran Mellerud. Smaller operators will fold if prices remain low.
Regulatory Pressures Mount
To further dash hopes for institutional inflows, the SEC postponed rulings on spot Ethereum ETFs until 2025. At the same time, China stepped up its crypto crackdown, restricting access to offshore exchanges such as Binance and OKX. Threatening fines and account suspensions, the PBOC cautioned people against “illegal” crypto trading.
Targeting fossil fuel-powered operations, legislators in the United States proposed a 30% tax on the energy usage in Bitcoin mining. Should the measure be approved, 15% of American mining activities might be shuttered. Perianne Boring of the Chamber of Digital Commerce declared, “Regulatory hostility is suffocating innovation.”
Bitcoin’s Key Support
The immediate fate of Bitcoin depends on holding $35,000, a level matching its 200-week moving average. A breakdown might set off a decline to $30,000, where institutional buying first surfaced in Q1 2024. Upside resistance comes around $38,900, with a close above required to reignite a hopeful attitude.
Macro drivers include the November Fed meeting, in which officials might indicate rate reductions should inflation slow down. Geopolitical developments remain crucial, particularly in U.S.-China trade negotiations. On Ethereum ETFs or mining taxes, regulatory clarity could offer relief. Long term, the April 2024 Bitcoin halving seems like a historical positive trigger.
Conclusion
Bitcoin Struggles Amid emphasizes its sensitivity to geopolitical and socioeconomic events. With technicals and miner capitulation alerting of more losses, the U.S.-China trade conflict has destroyed months of gains. Without the liquidity of Bitcoin, altcoins face existential threats in a protracted bear market.
Still, the principles of cryptocurrencies are strong. Blockchain’s disruptive power, improvements in Ethereum, and Bitcoin’s scarcity remain true. Should the Fed turn around, trade tensions relax, or regulatory barriers vanish, markets might stabilize. Volatility will test investor determination until then; this reminds us that world events outside of their reach still bind the future of cryptocurrencies.