Why is the crypto market down today? The fall in the total cryptocurrency market capitalization on Thursday can be attributed to a number of potential factors.
Firstly, there is the bearish close of the S&P 500 (SPX), which decreased by 0.33%. This continued the drop that has been ongoing since Aug. 15, which has seen the index fall by 17.50%.
Due to the nearly perfect correlation (blue) between SPX and the crypto market, a fall in the former inversely correlates with the other.
A more important factor could be the Consumer Price Index (CPI) reading, which came at 8.20%. This is slightly higher than the expected rate of 8.10%.
It is possible that this will be the catalyst for a further rate hike, hence leading to investor panic. However, it is worth noting that the rate was lower than the previous CPI reading of 8.30%.
Bitcoin Price Performs Just as Badly as the Rest of the Crypto Market
At a drop of 3.8%, the cryptocurrency market cap has fallen at the same rate as Bitcoin. While BTC price initially reached a low of $18,190, it bounced shortly afterward and is currently trading at $18,430. Measuring from the day’s opening, Bitcoin price has decreased by 3.85%.
The daily RSI is bearish, since it has broken down from an ascending support line (green) and is below 50. The reading supports the continuation of the downward movement that correlates with the rest of the crypto market.
Since BTC price is in the process of breaking down from the $18,850 support area, the next support would be at $17,000. If Bitcoin price reaches this area, it would hit a new yearly low as the current low is at $17,622.
Huobi Token Price Increases Despite Market Downturn
HT price has increased by 76% over the past four days, posting an extremely negative correlation to the rest of the crypto market. Huobi Token price reached a high of $7.67 before being rejected (red icon).
The rejection occurred once Huobi Token price reached the $7.20 horizontal area, which is a crucial level that had previously acted as support for a year.
HT price increase occurred shortly after the Huobi Global announced that a buyout vehicle of About Capital Management had purchased a majority stake in the company. It is possible that there is optimism around the deal and the future potential of the company and its new ownership, as well as the rest of the crypto market.
For Be[In]Crypto’s latest Bitcoin (BTC) analysis, click here
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