Is Bitcoin Dead? Crypto Traders Bullish Amid Stock Market Sell-Off

Is Bitcoin Dead? Crypto Traders Remain Bullish Amidst Stock Market Sell-Off.

9 October 2023

In a week marked by stock market turbulence and surging bond yields, Bitcoin and other cryptocurrencies have displayed remarkable resilience, prompting many to think, “Is Bitcoin dead?” 

The digital asset’s performance over the past 24 hours suggests otherwise, as it held steady at approximately $27,550, defying the downward pressure from a selloff in traditional equities and escalating bond outcomes. 

While Bitcoin’s value has experienced a minor drop of less than 1%, it has maintained a tight trading range between $27,300 and $27,700. This stability is particularly noteworthy given the historic calmness the crypto market has witnessed over the past month, with Bitcoin consistently climbing above the $26,000 mark. However, despite falling from its recent peak above $28,000 earlier this week, the dominant sentiment among experts remains bullish. 

Alex Thorn, the Head of Research at Galaxy, a crypto financial services group, commented on Bitcoin’s resilience, stating, “Despite rising yields and dollar strength, Bitcoin has held up remarkably well due to limited selling and strong conviction from long-term holders.” Thorn added, “A clean break above $28,000 would pave the way for Bitcoin to begin to test the $30,000 range.” 

In contrast to the stock market, where both the Dow Jones Industrial Average and the S&P 500 have experienced declines this week, Bitcoin has maintained its stability, staying above its previous trading range and remaining in close proximity to recent highs. This remarkable performance comes even as the result on the benchmark 10-year U.S. Treasury note reached 4.8% — a level not seen since 2007 — amid concerns about the future direction of interest rates. 

Rising bond yields typically put downward pressure on risk-sensitive assets, as higher returns on government debt reduce the motivation for investors to take on riskier investments such as Bitcoin. While rising yields have impacted stocks this week, the crypto market has largely held its ground. Traders remain optimistic following a historically powerful September, which could set the stage for further gains in the coming month. 

“October has been Bitcoin’s best-performing month since 2014 (excluding 2018), with an average gain of 19.48% for the month over the last nine years,” noted Thorn. “Market participants have actively positioned themselves for significant Bitcoin upside in October, with many willing to pay steep options premiums to capture potential gains.” 

Beyond Bitcoin, Ethereum — the second-largest cryptocurrency — experienced a slight drop of less than 1%, trading at $1,650. Meanwhile, smaller tokens and altcoins displayed mixed performance, with Cardano declining by 1.5% and Polygon seeing a 3% increase. Memecoins, on the other hand, faced weakness, as Dogecoin dropped by 2%, and Shiba Inu shed 1%. In conclusion, while challenges persist in the broader financial markets, Bitcoin’s resilience and the uncompromising confidence of traders suggest that the cryptocurrency is far from dead. Investors will closely watch its performance in the coming weeks as it strives to break new ground again. Is Bitcoin dead? The answer appears to be a resounding “no” as it stands strong in the face of hardship.

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