Bitcoin dropped 4.4% on September 16 after opening the day above $60,000 but failed to establish support above that level.
Meanwhile, the broader cryptocurrency market saw $204.88 million in liquidations with the total market capitalization dropping 5.1% over the past 24 hours.
The downturn was amplified for altcoins with RUNE, GRT, and T all down over the past 24 hours.
Meanwhile, USDT saw a 74% spike in trading volume as traders moved funds into stablecoins to hedge against further losses and preserve capital.
Bitcoin traded in a tight range of $57,572.05 – $60,366.59 and lost a huge chunk of its last week’s gain, but was still up 3.7% on the weekly charts.
The increased market activity saw BTC’s trading volume rise by 176.80% from the previous day, driven largely by heightened selling pressure as traders rushed to exit positions amid a declining price trend.
Sentiment among traders had turned bearish as Bitcoin breached the critical support near the $58,000 mark.
Crypto analyst Ali noted in an X post that Bitcoin had been in a sustained downtrend since dropping below $66,750 in June, with no signs of reversal yet.
He warned that if Bitcoin failed to hold the $58,100 support level, the price could dip further towards $55,000.
Similarly, Rekt Capital highlighted that Bitcoin failed to maintain its position above the $58,148 level after the anticipated weekly close above the bottom of a downtrending channel.
Instead of confirming this level as new support, Bitcoin experienced a sharp dip, suggesting a volatile retest of the channel’s lower boundary.
Both analysts point to the $58,000 level as a key support that, if not reclaimed, could lead to further downside.
At the time of the report’s publication, BTC was trading at $57,785.52, indicating that the scenario of further downside, as both analysts warned, could be playing out. The altcoin market dropped alongside Bitcoin.
Thorchain
RUNE, the native token of cross-chain liquidity protocol THORChain, dipped 6.2% over the past day exchanging hands at $3.91 at press time.
Despite the daily dip in price, it was still trading 5.8% higher than its weekly low of $3.69.
Source: CoinMarketcap
Moreover, RUNE’s daily trading volume had jumped by 76.5%, hovering around $228.8 million while its market cap stood at $1.31 billion making it the 61st largest cryptocurrency per CoinGecko data.
THORChain is a layer-1 blockchain and decentralized exchange that enables cross-chain asset swaps between different layer-1 blockchains, which are typically isolated from each other.
Built using the Cosmos-SDK and Tendermint, THORChain was officially launched in June 2022.
Despite having shed a sizeable portion of its gains over the past year, the general sentiment around the cryptocurrency remained bullish.
The Graph
The Graphs’s native token GRT also experienced a 5.4% drop in price in tandem with the broader altcoin market.
GRT’s drop came amid a 2.5% dip in Nvidia’s stock price.
AI-related tokens, including GRT, often move in response to gains or losses experienced by the AI chip-making giant.
Source: CoinMarketcap
GRT’s 24-hour trading volume was around $35.3 million, a 34% surge over the previous day.
The AI token’s market cap boasted a valuation of $1.3 billion at press time.
The Graph is a decentralized protocol that collects and organizes data from blockchains and storage networks.
It operates using the GRT token on the Ethereum network and is designed to assist developers in creating decentralized applications.
The social sentiment around GRT was mostly bullish as of September 16, meaning the recent drop was primarily driven by Bitcoin’s downturn with Nvidia’s stock prices also adding to the bearish sentiment.
Threshold network
Threshold network’s native token T also felt the bearish momentum in the broader altcoin market as it fell by 4.3% over the last 24 hours.
In the same period, the token’s trading volume had dipped 8% to around $11.5 million while its market cap stood at $209 million.
Threshold Network is a blockchain protocol dedicated to enhancing digital privacy and interoperability.
It provides cryptographic solutions to ensure secure transactions and enables cross-chain bridges, such as tBTC, which allows Bitcoin to be tokenized and used in Ethereum’s DeFi ecosystem.
The network uses the T token as a utility and governance token to incentivize node operators, participate in decision-making, and secure various network services, supporting the protocol’s privacy-preserving and cross-chain capabilities.
Tether
Tether’s USDT remained the most popular stablecoin as its 24-hour trading volume rose 74%.
Traders use stablecoins to shield their funds from market volatility, as these digital assets are pegged to fiat currencies like the US dollar, offering stability and a quick way to exit risky positions without exiting the crypto ecosystem.
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