Where Is The Crypto Market Headed Short Term?

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This commitment to thorough research enables us to time our calls strategically, facilitating informed decisions on the best buying moments. Especially when deciding when not to buyand what to buy. In this article, you will discover more about where the crypto market will be in some months.

Where Will We Be in the Short Term?

In the annals of Bitcoin, October has traditionally emerged as a robust month for the crypto market, affectionately dubbed “Uptober.” Despite the understanding that historical patterns don’t uniformly replicate, the reassurance derived from such trends persists. However, the ongoing Israel-Hamas War looms as a potential significant disruptor.

Currently, Bitcoin is in a bullish phase, hovering just above $30,000. This movement follows the dissemination of inaccurate information regarding the SEC greenlighting the first Bitcoin spot ETF. The false report initially fueled a surge in the markets early on Monday (16th October). But as the truth unfolded, it triggered a downturn in Bitcoin’s value. However, Bitcoin and the whole crypto market bounced back to 30k in no time!

Why Did The Market Rise And Fall?

Earlier Monday, 16th October, Bitcoin experienced a rapid surge, approaching the $30,000 mark. The catalyst was a tweet from Cointelegraph, a crypto news site, claiming the approval of a spot Bitcoin ETF. This misinformation led to over $100 million in liquidations within mere hours.

Contrary to the initial claim, a check on the SEC website reveals no approvals for a spot Bitcoin ETF. Bloomberg also reports that BlackRock’s application is still under review.

So, BlackRock and other reliable sources also promptly refuted the claim, revealing it as false. Cointelegraph later apologized for the tweet, acknowledging its role in disseminating inaccurate information.

But now we know that the Spot ETF news is around the corner, and what to expect from it.

Price Fallout and Market Skepticism

Despite the Cointelegraph deleting the false post after nearly 30 minutes, its impact lingered. Bitcoin’s value retreated from $30,000 to $28,000, following skepticism among analysts and reporters regarding the misleading information.

CoinGlass data unveils the aftermath, with $81 million worth of short positions and $31 million in longs liquidated during the move to $30,000. The correction significantly impacted traders, with 39,106 facing liquidation in the past 24 hours, amounting to a total of $186.62 million.

Source: Coinglass
Positives: Surging On-Chain Activity

Recent on-chain data signals a surge in bitcoin holdings among long-term investors, reaching record levels. Simultaneously, Ethereum experienced a notable drop in gas usage, accelerating Ether inflation.

Bitcoin’s dominance in the overall cryptocurrency market capitalization has expanded, accompanied by gains relative to ether.

Negatives: Impact of U.S. Inflation Data and Geopolitical Tensions on Markets

Last week, U.S. inflation figures stirred market volatility, causing a notable reaction despite the numbers slightly exceeding expectations. The headline Consumer Price Index (CPI) registered a 3.7% year-over-year increase, just above the anticipated 3.6%.

The primary driver behind this uptick remains housing costs, while the core CPI, excluding housing, maintains a level below 3%. The heightened market response to the CPI data suggests mounting concerns amid escalating geopolitical tensions in the Middle East.

Stocks experienced an upward trend, with the S&P 500 closing up by 1%, while bond prices declined. This shift occurred as diplomatic efforts intensified to prevent the Israel-Hamas conflict from escalating into a regional crisis.

The Dominant Concern: Impact of the Israel Conflict on Global Dynamics

The overarching concern currently overshadowing other macro factors, such as interest rates and GDP, is the ongoing war in Israel. This macroscopic element holds a weightiness that surpasses the rest due to its potential to influence various aspects profoundly.

At a macro level, an escalation in the conflict could disrupt the oil and gas supply chains, leading to a surge in inflation.

Media Narratives

In the context of the crypto factor within this geopolitical turmoil, mainstream media has already presented narratives on how different entities purportedly used cryptocurrencies to fund Hamas.

If the conflict intensifies, involving additional militant groups, it wouldn’t be unexpected to witness similar narratives implicating crypto in financing those groups. Such a scenario could trigger sanctions against prominent crypto entities.

Regulatory Repercussions

Sanctions are not the sole concern; recent actions by countries like Pakistan and Kuwait, which banned crypto under the Financial Action Task Force (FATF) ‘s directive, set a precedent.

Other Middle Eastern nations might find themselves compelled to take similar measures in light of recent revelations. Notably, the UAE is already in a precarious position with the FATF, having been greylisted early last year.

Reversal of Pro-Crypto Trends

This potential chain of events could effectively reverse the pro-crypto trajectory observed in the Middle East.

Several Gulf countries have actively sought to establish themselves as crypto hubs, with even Saudi Arabia exploring crypto regulations. Abandoning these ambitions could inflict substantial harm on the crypto industry.

Let’s hope such a scenario does not come to pass.


The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers, and their risk tolerance may be different from yours.

We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments, so please do your due diligence.

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