The cryptocurrency market has once again fallen due to US regulatory policy

On Monday evening, October 27, leading cryptocurrencies declined amid growing expectations that the US Federal Reserve would cut its key policy rate and on the eve of President Donald Trump’s meeting with Chinese President Xi Jinping. Against this backdrop, stock markets, on the contrary, set new records. Thus, Bitcoin BTC $111,259.00 Mezo Wrapped BTC -1.11% Market capitalization $59.29 million VOL. 24 hours $1.75 billion was trading at around $ 114,227, losing 0.69% per day. Ethereum ETH $4,000.83 Bridged Ether (StarkGate) -2.29% Market capitalization $97.21 million VOL. 24 hours $1.82 billion dropped by 1.26% to $ 4,128, Dogecoin DOGE $0.19 Binance-Peg Dogecoin -3.33% Market capitalization $0.5 billion VOL. 24 hours $0.21 billion sank by 3.2% to $ 0.2009, Solana SOL $193.78 Binance-Peg SOL -3.68% Market capitalization $0.21 billion VOL. 24 hours $0.85 billion lost 1.92% to trade at around $ 200, and XRP XRP $2.61 XRP -0.69% Market capitalization $156.71 billion VOL. 24 hours $0.32 billion dropped by 0.39% to $ 2.64.

Trading volumes increased: in Bitcoin — by 35%, in Ethereum — by 27%, indicating increased pressure from sellers. The total amount of liquidations in the crypto market in 24 hours amounted to $ 307 million, of which more than $ 190 million were long positions, according to Coinglass. The open interest in Bitcoin decreased by 0.1%, although most traders on Binance remain long. The Crypto Fear & Greed Index showed a «neutral» sentiment on the market.

Despite the correction, analysts expect that Bitcoin’s decline may be temporary. Renowned trader Michael van de Poppe noted that a decline to $ 112,000 could precede a new all-time high. Another analyst, Ted Pillows, pointed to a key support zone for Ethereum in the range of $ 4,050−4,100 and resistance at $ 4,300. If buyers are able to regain control of this level, the expert expects a «rapid upward movement.»

The total capitalization of the cryptocurrency market decreased by 0.75% over the day to $ 3.86 trillion. Among the tokens with a capitalization of more than $ 100 million, Official Melania Meme (31.7%), Ribbita by Virtuals (13.77%) and BitMart Token (13.58%) grew the most.

The opposite dynamics is observed in the stock markets: The Dow Jones rose by 0.71% to 47,544.59 points, the S&P 500 by 1.23% to 6,875.16 points, and the Nasdaq added 1.86% to reach 23,637.46 points. Investors' optimism is supported by expectations of a 97% probability of a 25 basis point Fed rate cut this week, according to CME FedWatch, as well as a potential extension of the US-China trade truce.