Ryan Lee, Chief Analyst at Bitget Research recently explained that Bitcoin (BTC), the flagship cryptocurrency, has grown steadily to become a major global asset, one whose market cap is impacted significantly by global events.
For instance, Ryan Lee of Bitget Research, noted that the ongoing crisis in the Middle East has derailed Bitcoin’s (BTC) anticipated recovery in September (to some extent at least).
For the month of October, Ryan Lee of Bitget said that historically this period is actually considered a positive month for the crypto markets, but Bitcoin has fallen by 4.8% to $60,683, with current volatility showing that another plunge might be ahead. But at the time of writing, BTC is trading at around $63,500 after trading closer to $60,000 a few days back.
Ryan Lee added that during the last few days, a very “intense liquidation” followed this event.
And Lee pointed out that market data indicates that over $700 million has been liquidated thus far in October, with BTC taking a significant portion of the figure. Generally speaking, Lee explained that these types of liquidations could be considered an “avenue for market reset, as most traders were over-leveraged before now.”
Lee added that it might be too early to “judge the trend” for the rest of the month as most investors are largely “reactionary to macro events.”
Lee also mentioned that a look at some of this performance data, “like the 16% drop in trading volume, shows dwindling sentiment.”
According to the Bitget research analyst, this reaction is explainable, as investors will usually tend to “prefer not to get caught up in a macroeconomic situation that will tie down their capital.”
Lee added that despite the general downturn, institutional investors continue to buy digital currency at “a rate at par or higher than the quantity mined daily (as per data observed on Cryptoquant).”
At present, BTC has notably sustained over the $60,000 support level and could possibly fluctuate in the $72,000 range, according to Bitget researchers. And the anticipation for fed interest rate cuts and market rebound could come from Bitcoin’s “historically optimistic” Q4s.
Lee also mentioned that altcoins typically maintain a deep/strong correlation with Bitcoin.
Out of the lot, Solana and Cardano, exhibit an “intriguing technology” that has made them stand out to the community.
Beyond the current price outlook, both are building “a robust and diversified ecosystem that will continually relate to their native tokens.”
Lee added that Solana, for instance, has continued to compete for “a share of the DeFi market. With a $10.5 billion TVL, more than 77 million SOL have been locked, creating a scarcity that can prop up prices in the long term.”
Lee further explained that beyond DeFi, Solana is making waves as “a hub for retail transaction push, with memecoin and DePIN growing quickly.”
Looking at the bigger picture, SOL will continually be in “high demand,” and it’s only a matter of time before it breaches the $260 ATH milestone, the Bitget researchers predicted.
Lee also noted that Cardano is considered one of the “most developed” blockchain protocols in the market.
But for $0.34, many believe it is undervalued, “considering its latest advances.”
Lee also mentioned that Cardano has recently entered the spotlight as “one of the few protocols with decentralized governance.”
Lee of Bitget concluded that through the Chang hard fork, the community now has a “say in the protocol’s affairs, guaranteeing inclusion overall.”