Crypto Market Stabilizes as Bitcoin Inches Closer to $27.7k; AVAX and XRP Soar

5 October 2023, Thursday
Crypto Market Stabilizes as Bitcoin Inches Closer to $27.7k; AVAX and XRP Soar

Bitcoin Gains Ground as Crypto Markets Stabilize


Bitcoin Breaks Downtrend and Shows Promise


Bitcoin (BTC) saw a 1.3% increase in the past 24 hours, reaching around $27,700. This comes as traditional markets calm down and the crypto market stabilizes after a sharp rally on Monday. Analysts from Matrixport, a crypto services provider, believe that BTC has broken its downtrend and could potentially reach $30,000. However, the initial surge on Monday did not have a strong follow-through, with trading volume dropping from $19 billion to $11 billion.


Low Volatility Expected in Crypto Markets


Enigma Securities, an institutional digital asset liquidity and advisory firm, predicts that crypto markets will experience low volatility in the coming months. This means that prices are likely to consolidate and move sideways, providing an opportunity for long-term investors to accumulate assets. Vetle Lunde, a senior analyst at K33 Research, also agrees that the market will remain stable in October.


Traditional Markets Calm Down


After a turbulent session on Tuesday, traditional markets have settled. The ADP reported that the U.S. economy added 89,000 jobs in September, which is lower than expected. This indicates a cooling labor market. The S&P 500 index closed 0.8% higher, while the NASDAQ 100 index gained 1.45%.


Ether Underperforms, Bitcoin Recommended


Ether (ETH) experienced a 0.7% slide as investors processed the disappointing performance of the first futures-based exchange-traded funds in the U.S. K33 Research suggests that investors rotate into BTC due to the lack of medium-term catalysts for ETH.


Top Performers and Positive Developments


Solana’s native token SOL decreased by 2.3% in the past 24 hours, but it is still up over 20% in a week. Avalanche’s AVAX, a Layer 1 blockchain, surged by 7%. XRP also rallied over 3% after Ripple’s Asian arm obtained a license in Singapore and received a favorable court ruling.