Bitcoin above $26,500; Ethereum below $1,550; Altcoins drop

The lower-than-expected inflation data in the US pushed the dollar index and treasury yields up, denting the sentiments for the riskier asset class

Bitcoin and other crypto currencies were struggling on Friday, marking the fourth successive session of decline. The lower-than-expected inflation data in the US pushed the dollar index and treasury yields up, denting the sentiments for the riskier asset class.

Bitcoin was in the red once more as the crypto currency dropped slightly but managed to hold above 26,500 levels. However, its biggest peer, Ethereum, declined over a per cent to slid below $1,550-level. Pain in the altcoins continued to weigh on the market sentiments.

The crypto market has been experiencing a marginal drop for the sixth day in a row. The drop in the crypto markets can be attributed to the September Consumer price index data that came out the previous day, said Parth Chaturvedi, Investments Lead at CoinSwitch Ventures. The US Dollar Index has jumped, pressuring ‘risk-on’ asset classes such as equities and crypto, he added.

All leading crypto currencies were down on Friday. Toncoin and Solana shed nearly 3 per cent each, while Tron, Polkadot and Polygon lost around a per cent each. Shiba Inu edged up, while the US dollar pegged USD Coin was also marginally higher in the early trade.

The global crypto currency market capitalisation was down significantly, declining to $1.04 trillion-mark, as it shed around half-a-per cent during the past 24 hours. Nevertheless, the total trading volumes dipped nearly 13 per cent to $22.64 billion.

Bitcoin has been trading near the $26,600 level. The US Consumer price index for September increased 0.4 per cent instead of the expected 0.3 per cent and sparked increase in the US Dollar index. This may have made investors slightly cautious regarding their investments, said Edul Patel, Co-Founder & Chief Executive Officer at Mudrex.

Traditional markets have been affected similarly. Bitcoin will now need to break the resistance at $26,900 or will potentially seek support near the $26,500 mark. In the meantime, Ethereum is currently at its lowest level since March this year and is trading above $1,500, he added.

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