- Bitcoin (BTC) surpassed the $20,000 barrier last week.
- The latest FTX-Binance crisis has also caused increased concern among investors.
Volatility has returned to the crypto markets. Coinglass reports that in the last 24 hours, $3.15 billion worth of Bitcoin (BTC) has been sent to exchanges, that is 152,000 Bitcoins.
Now, it’s typically not a positive indicator when cryptocurrency is transferred from wallets to exchanges. This opens the door for the tokens to be dumped on the exchanges. Bitcoin (BTC) surpassed the $20,000 barrier last week.
Even yet, the upswing fizzled out earlier this week. Once again, the king cryptocurrency has fallen below $21k. Furthermore, Ethereum (ETH) also decreased in value, dropping below the $1600 level. The change may have been made in preparation for increased market volatility.
Multiple Factors in Consideration
In an effort to slow inflation, the Federal Reserve raised interest rates recently by 75 basis points. Investor mood may have been affected by two occurrences in particular. The first is that on Tuesday, November 8th, the United States will have its midterm elections. Inflation and the cost of living are themes that both sides are eager to discuss.
Aside from that, on November 10th, only two days after the midterm elections, the FED will disclose its October inflation figures. A 7.9% rate of inflation in the US would be 0.3% lower than in September, according to forecasts. However, many continue to count on the FED to raise interest rates next month. The cryptocurrency markets may breathe a sigh of relief if the CPI statistics come in lower than predicted.
The latest FTX-Binance crisis has also caused increased concern among investors. After “recent developments,” Binance CEO Changpeng Zhao (CZ) said that the exchange will sell off all FTT (FTX’s native token).
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