Bitcoin, after briefly plunging below the crucial US$26,000 threshold, has shown commendable stability, finding its feet at around US$26,133.35. Ether demonstrated a parallel movement, approaching the US$1,600 mark but not wandering far beneath it. However, the broader cryptocurrency landscape wasn’t as fortunate, with most significant cryptocurrencies, especially Polygon’s Matic token, taking a hit. Moreover, many investors are jumping on the “sell nfts” bandwagon, crashing the NFT market.
ETF Speculation and Market Reactions
The recent tumult in the digital asset investment arena is evident from the US$55 million outflow observed last week. CoinShares points the finger at fading optimism regarding the U.S. giving the nod to a Bitcoin ETF in the near future. Market experts opine that the Bitcoin price fluctuations recently observed are merely corrective reactions, post a period of heightened ETF speculation in the U.S.
Liquidity Concerns Deepen
Adding to the volatile state of affairs is the issue of low liquidity, underscored by subdued trading volumes. This lack of liquidity is compelling even established market makers, like GSR Markets, to resort to layoffs, highlighting the severity of the prevailing market conditions.
NFT Market Faces its Own Set of Challenges – Sell NFTs?
The NFT sector, while distinct, isn’t immune to the current volatility. Indices such as the Forkast 500 NFT are in decline, a downturn exacerbated by NFT giant OpenSea’s decision to cease enforcing creator royalty fees, a move that garnered its fair share of critics. While the value of NFTs has seen a dip, transaction volumes paint a different picture, hitting an all-time high. This indicates a divergence between popularity and profitability in the current NFT market.
NFT Platform Recur Announces Shutdown
In a surprising turn of events, NFT platform Recur announced its decision to wind down by November, a move that’s particularly shocking considering it followed a sizable funding round that had previously boosted the platform’s valuation significantly.