Why did Bitcoin fall to$27,300?
The impact of traditional finance on cryptocurrencies
Investor confidence in Bitcoin has been affected by developments in the traditional financial sector, especially with regard to the actions of the United States Fed. The release of the latest United States labor market data on October 3, which revealed a significant increase in job openings, has raised expectations of contractionary measures by the Fed.
Fed Chairman Jerome Powell has previously hinted at a possible monetary policy response if labor market conditions do not improve. As a result, traders are currently forecasting a 30 percent chance of a rate hike at the November meeting, compared with just 16 percent the previous week, according to CME's FedWatch tool.
Ether Futures ETF launch less than satisfactory:
October 2 marks the launch of nine new ETF products designed to track the performance of Ether-related futures contracts. However, the trading volume for these products was still below US$ 2 million on the day of their debut.
Regulatory pressure increases with class action against Binance
On October 2, a class action lawsuit was filed against Binance.US and its CEO, Changpeng " CZ " Zhao, in Northern California District Court. The lawsuit alleges unfair competition and attempts to dominate the cryptocurrency market, particularly to the detriment of its competitor FTX.
The plaintiffs claim that CZ's statements on social media are false and misleading, especially in light of Binance's sale of FTT token holdings prior to the announcement on November 6, 2022.
Bitcoin correlation with traditional markets higher than expected
The drop in Bitcoin prices on October 3 appears to reflect concerns about an impending economic recession and a potential monetary policy response from the Fed.