Bitcoin (BTC) remained lower at the open on Wall Street on November 7 as the eve of the US mid-term elections opened with flat equity performance.
Cryptocurrencies reeling from FTX woes
Data from Cointelegraph Markets Pro and TradingView showed the BTC/USD pair approaching $20,600 at the time of writing, a three-day low.
Volatility is expected around the mid-term elections and the release of the October Consumer Price Index (CPI) later in the week.
An additional hurdle in the form of controversy over the FTX trading platform added to the cold feet of the market, with commentators wary of unnecessary damage to growth.
“This whole thing is incredibly bad for the industry, and especially for the retailer,” summarized the popular trader and analyst Pentoshi.
“Retail is the one who pays for it when the war breaks out. But it can also end with unintended consequences. Unlucky to see.
Bitcoin has plunged overnight following comments from Changpeng Zhao, CEO of the world’s largest stock exchange Binance, confirming that the exchange would be dumping the FTX token.
William Clemente, co-founder of cryptocurrency research firm Reflexivity, offered a silver lining in the form of greater value for decentralized exchanges (DEXs) in the future.
“Just as centralized cryptocurrency lenders’ mismanagement of risk earlier this year established the bull case for DeFi, this centralized exchange drama is also establishing the bull case for DEXs.”, tweetedreferring to the LUNA debacle of Terra and the associated repercussions.
A look at the top ten cryptocurrencies by market cap showed a mixed performance on the day, with stronger 24-hour losses for Solana (SOL), down 12.4%.
Going back to Bitcoin, trader Il Capo of Crypto held close to an existing theory of $21,500 marking a local high to come, which would be followed by a more severe drop.
“21,500 and burn. Do it”, wrote that day.
That theory included a macro low target of $14,000, in stark contrast to other forecasts, which forecast $30,000 in a few weeks.
Analyst: DXY “key to everything”
Meanwhile, both the S&P 500 and the Nasdaq Composite Index were flat before the midterm elections.
The US Dollar Index (DXY), busy attempting a reprieve from last week’s losses, hovered around 110.5 at the time of writing, unable to find any upside momentum.
investigating with precision macro markets, Raoul Pal, founder and CEO of Global Macro Investor, called dollar weakness “the key to everything right now.”
“We’re not totally convinced that we can’t make one last push higher towards 117, but we are approaching a top,” the researcher added.
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