Bitcoin Fall Below $28,500, Crypto Market Declines Sharply

Overview

The markets have continued to fall, providing support for bears and indicating a potential shift in the trend toward the downside. Bitcoin and other cryptocurrency markets have reached their lowest point in two months, with market capitalization dropping to its lowest point since June 20. A daily fall of 2% brought the total market value of cryptocurrencies down to $1.17 trillion on August 17, marking a new low for the market since June 20. Coinbase has been granted a license to start cryptocurrency derivatives. They were, however, insufficient to avert the selloff.?

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Fundamental Updates

Let's delve into the significant developments shaping the crypto market landscape:

• Coinbase Finally Gets U.S. Crypto Futures Listing Approval: The National Futures Association (NFA) has given Coinbase Financial Markets permission to operate as a Futures Commission Merchant (FCM), the company said on Wednesday. FCMs purchase and sell futures contracts, just as market makers. In accordance with a press release, Coinbase is the first American cryptocurrency-focused platform to provide leveraged, regulated crypto futures in addition to spot trading. For the crypto industry to flourish and attract more participants, US investors must have access to safe and regulated crypto futures. The global market for cryptocurrency derivatives was valued at slightly under $3 trillion in May, according to CoinGecko, and three-quarters of trading volumes are accounted for by it, according to Coinbase. Because the global market for cryptocurrency derivatives is three to four times larger than the spot market, this authorization increases Coinbase's addressable market.

• Grayscale Bitcoin ETF ruling may occur this week: Grayscale Investments, which has been attempting to transform its Bitcoin trust into a spot Bitcoin exchange-traded fund, may receive a verdict on its lawsuit against the federal securities regulator by the end of the week. The anticipated Grayscale decision may have an impact on the race to find an approved spot Bitcoin exchange-traded fund. Grayscale's bid to convert its GBTC to a spot Bitcoin ETF was denied by the Securities and Exchange Commission in June 2022. In response, Grayscale filed a lawsuit against the Securities and Exchange Commission, alleging that it was acting arbitrarily by failing to apply consistent treatment to identical investment vehicles.

Outlook for DeFi: The total value locked (TVL) of decentralised finance (DeFi) has surpassed $41 billion, indicating a revival. This rise follows a period of uncertainty when the TVL was below $40 billion. DefiLlama's data shows a DeFi market valuation of over $41 billion and a good trading volume of $1.6 billion yesterday. This current upswing shows a 6% daily gain and 6.39% trade volume rise. Chainlink (LINK) is one of the top DeFi tokens, up 4%. Over the previous week, Synthetix (SNX) and Injective (INJ) fell 2.70% and 3.36%, respectively.

Bitcoin Price Analysis:

Bitcoin plummeted below the $29,500 price level, and the lengthy wick on the candlestick indicates selling at higher levels. The BTC/USDT pair stays below the 20-day EMA, and the relative strength index (RSI) is negative. This shows that the bears have a tiny advantage. The pair might fall to the critical support level of $27,812. If the price rebounds strongly from this level and rises above the 20-day EMA, it indicates that the pair may continue to swing between $28,500 and $30,000 for some time. The bears will win if the price falls and stays below $28,000. This might signal the start of a fall toward $27,000.

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