Bitcoin, Ethereum, Dogecoin Decline As Binance Smart Chain Is Halted: Analyst Says 'Only A Matter Of Time Before We See Short Liquidations'

Zinger Key Points
  • Major coins decline ahead of non-farm payrolls data expected on Friday.
  • Current market conditions a range trader's dream says Justin Bennett.
  • Institutional buyers still not in action, which could undermine upwards momentum for Bitcoin.
Bitcoin, Ethereum, Dogecoin Decline As Binance Smart Chain Is Halted: Analyst Says 'Only A Matter Of Time Before We See Short Liquidations'

Major coins flashed red on Thursday evening as the global cryptocurrency market cap declined 1% to $959 billion at 8:57 p.m. EDT as Binance Smart Chain was halted after suffering an expoit on a cross-chain bridge.

Price Performance Of Major Coins
Coin 24-hour 7-day Price
Bitcoin BTC/USD -1.25% 2% $20,019.36
Ethereum ETH/USD -0.5% 0.9% $1,358.30
Dogecoin DOGE/USD -2.5% 4.4% $0.06
Top 24-Hour Gainers (Data via CoinMarketCap)
Cryptocurrency 24-Hour % Change (+/-) Price
Casper (CSPR) +11.8% $0.035
XDC Network (XDC) +5.1% $0.03
Ravencoin (RVN) +3% ​​$0.036

See Also: How To Get Free Crypto

Why It Matters: Bitcoin and Ethereum traded lower on Thursday evening after major U.S. stock indices charted declines intraday. At the time of writing the S&P 500 and Nasdaq futures were 0.2% and 0.25% lower, respectively.

Investors remain nervous about the September jobs report due for release on Friday. 

“U.S. stocks bounced around on payrolls eve, digesting another round of hawkish Fed speak. Minneapolis Fed President Neel Kashkari signaled there is no Fed pivot coming until financial conditions worsen significantly from here,” said Edward Moya, a senior market analyst with OANDA.

“Bitcoin appears to be consolidating around the $20,000 level as much of Wall Street awaits Friday’s nonfarm payroll report,” said Moya in a note seen by Benzinga.

“Much of the crypto headlines focus on the recent woes for the space but are not containing any new bearish catalyst. Bitcoin’s next major move will likely be determined by what is the next major move with rates and we will find that out tomorrow morning.”

Justin Bennett said that cryptocurrency markets have been “boring” recently and in particular action related to Bitcoin.

“This has been a range trader's dream, though. I still think it's only a matter of time before we see short liquidations run between $20,450 and $20,800,” said the trader on Twitter.

Market capitalization versus its realized capitalization, a metric that is calculated by dividing an asset’s market capitalization by realized capitalization, shows that average traders are “still underwater” on their investments, tweeted market intelligence platform Santiment

“Based on most returns across multiple timeframes, [altcoins] continue to show historically beneficial levels for the patient.”

Institutional investors are still not buying Bitcoin, tweeted CryptoQuant. The apex coin is likely to lose its upward momentum if the prices rose without purchasing by institutional investors before the FOMC rate announcement in November, said the community-based cryptocurrency analysis firm.

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