Market Wrap: Bitcoin Drops Below $19K Amid Ongoing Volatility

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Bitcoin declines to close the week, falling back below $19,000. GWilliamsJr_CMT and _jocelynyang_ report

Bitcoin and ether both traded lower on Friday following Thursday’s mild increase. Both digital assets continue to trade sideways, as they lack a substantive catalyst to push prices higher.

Bitcoin’s price fell 4% on moderate volume on Friday, following a 5% increase on Thursday. The largest cryptocurrency by market capitalization is now trading below $19,000 and is down 5% week over week. So far this year, bitcoin prices are down 61%. Ether fell 3%, also on moderate volume compared to its 20-day moving average. Ether prices are down 12% week over week, and 65% year to date. Since the widely anticipated and successful Ethereum Merge, ETH prices are down approximately 20%. Ether supply has increased by 5,400 post-Merge, though supply would have likely increased by more than 105,000 ETH had it not occurred. So while the Merge has not been deflationary by textbook definition, it has slowed ETH’s inflation rate considerably.

September’s reading was higher than August’s reading of 44, and above expectations for 48. Ironically, business expansion is not ideal for risk assets at the moment, as it willTraditional equities declined, as the Dow Jones Industrial Average fell 480 points, a 1.6% drop that sent the index to its lowest point of the year. The tech-heavy Nasdaq composite and S&P 500 both slipped about 2%.Energy sold off as well, with WTI crude oil falling 5.4%. Natural gas declined 3.

 

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