Bitcoin (BTC) ended its seven-day green streak on Thursday as signs of an overheated cryptocurrency market started to appear.
The benchmark cryptocurrency ended the session a percentage point lower and has remained subdued this morning.
As it stands, the BTC/USDT pair was trading just below the $34,200 price point at the time of writing.
Despite Friday’s more muted trades, bitcoin remains in a strong position, with over $6,000 between today’s spot price and the 200-day moving average trend line.
Bitcoin has more than doubled in price since the start of the year, buoyed by an increasing sense that bitcoin-linked exchange-traded products from BlackRock (NYSE:BLK), Grayscale, Ark Invest and other major financial institutions could finally see the light of day.
These spot bitcoin ETFs, which will let bitcoin be traded on the traditional US stock exchanges for the first time in history, could potentially usher in a new era of price discovery for the world’s largest cryptoasset.
In the meantime, nothing is 100% certain and if the market is in fact overheated, there could be some price corrections in the short term.
Bitcoin has a stellar October – Source: tradingview.com
The second-largest cryptocurrency Ethereum (ETH) is acting in a highly volatile manner, having oscillated above and below the 200-day trend line for the past three sessions.
Ether appears to be doing the same today, having dipped as low as $1,770 before correcting back above $1,790.
Expect further volatility as the bulls and bears attempt to sway the direction of the market.
Solana (SOL) remains the top mover in the blue-chip altcoin space, adding 25% week on week, followed by Cardano (ADA) and Dogecoin (DOGE).
Further down the scale, oracle network Chainlink is up as much as 45%, while the Floki meme coin has doubled in value.
Global cryptocurrency market capitalisation currently stands at $1.25 trillion, with bitcoin dominance above 54%.
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