Bitcoin Traded Below $48K on Tuesday

September 1, 2021


Bitcoin (BTC) slipped below $48,000 on Tuesday as traders monitor the latest batch of regulatory developments. The cryptocurrency was trading around $47,000 at press time, down about 2% over the past 24 hours.

China’s central bank reiterated its concerns about cryptocurrencies on Tuesday, weighing on investor sentiment. The central bank highlighted perceived risks involved in crypto trading, a major reason for the country’s crackdown this year on exchanges.

In the U.S., analysts are waiting for the Securities and Exchange Commission to decide when and whether to approve a bitcoin-focused exchange-traded fund (ETF). For now, some analysts see additional short-term consolidation in bitcoin, albeit above the 50-day moving average support level around $40,000.

Also on Tuesday, the parent company of stablecoin issuer Tether and crypto exchange Bitfinex, petitioned the New York Supreme Court to block the state’s attorney general from releasing documents to CoinDesk. The documents would detail the composition of Tether’s reserves over the past few years. Total transaction fees currently sit around 10,000 ETH per day, a relatively high level compared with the DeFi summer witnessed in 2020, according to data from Glassnode.

For example, crypto exchange FTX lowered its maximum leverage for these derivatives to 20 times, and Binance announced a similar move. BitMEX, whose former executives are facing trial in the U.S., still offers 100 times leverage, but its current CEO said in July that such aggressive borrowing is very rare on the platform.

Speaking of altcoins, August was a strong month for cryptocurrencies such as Cardano’s (ADA) token along with Polkadot’s (DOT) and XRP. High returns, especially relative to bitcoin, suggests altseason is heating up, as discussed in Monday’s market wrap. From a technical perspective, ADA is starting to pull back after reaching extreme overbought levels last week.

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