According to CoinDesk: Bitcoin (BTC) and the altcoin market experienced a significant slump on Tuesday, with Bitcoin falling below $28,000, following a surge of profit-taking and changing on-chain metrics. Bitcoin traded at over $27,600 during the afternoon hours in Asia.
Ether (ETH) dropped by 3.5% amid a disappointing first day of ETH futures ETF trading in the U.S. Likewise, Ripple (XRP) and Binance Coin (BNB) fell by 2.7%. Dogecoin (DOGE) and the altcoin Tron (TRX) dipped as much as 4%. Rollbit's RLB tokens, however, rallied with an 8% jump, continuing a trend of gains due to increased demand and platform revenues.
The CoinDesk Market Index (CMI), a comprehensive index of multiple tokens, fell by 3%, indicating a wave of profit-taking in the crypto market.
Crypto markets had seen an uptick on Monday, buoyed by optimism over ETFs, which traders hoped would inject fresh interest and capital into a relatively stagnant market environment. However, some market experts caution that the enthusiasm may be premature.
Lucas Kiely, Chief Investment Officer of Yield App, noted that although October has historically been favorable for cryptocurrency, only twice since 2013 has Bitcoin closed at a loss in October, it's still too early to get excited by current price movements without any significant catalysts.
Analysts from exchange Bitfinex, meanwhile, pointed out that long-term investors continue to add to their holdings, despite this slump. "On-chain activity for Bitcoin has hit record highs, mostly involving short-term holder supply. This allows the supply held by long-term holders to keep reaching new peaks as short-term holders sell," the analysts stated. They also noted that volatility might soon return to the crypto market, possibly favoring the upside.
