Bitcoin falls below $26,000; Ethereum surpasses $1,600; altcoins fall in value

Bitcoin was battling to hold gains and remained around $26,000, while Ethereum fell about 2% to dip below $1,600.

On Wednesday morning, Bitcoin and other crypto currencies were struggling as traders were alarmed by the possibility of selling pressure from bankrupt exchange FTX. The drop occurred as market players digested the potential of FTX obtaining bankruptcy court authority to sell assets from its $3.4 billion in bitcoin holdings.

The IMF and FSB issued a joint policy paper on cryptocurrency that cautioned countries against enacting blanket bans to prevent risks connected with the industry, instead recommending targeted limitations and prudent monetary policy. Targeted limits could be beneficial to emerging economies in particular.

Bitcoin was fighting to hold gains as the largest crypto asset rose modestly but stayed below $26,000 levels. Ethereum, its largest peer, fell roughly 2% to below $1,600. In the morning, the price of altcoins remained negative.

For the first time in nearly three months, Bitcoin briefly lost critical support at $25,000 in the last 24 hours. Ethereum has also slipped past its support level of $1,600 and is currently trading around $1,550. remarked Shubham Hudda, Senior Manager at CoinSwitch Markets Desk

While the Wednesday expectation of FTX unlocking remains a big impetus for Soalana’s sell-off, it is already down approximately 50% from its recent peak in July. Investors are likely to closely examine the US CPI data tomorrow, as well as the US Producer Price Index (PPI) data and US retail sales data the following day.

With a few exceptions, all of the biggest cryptocurrency tokens were trading down on Tuesday. XRP fell by more than 3%, while Polkadot fell by more than 2%. Other notable laggards included Polygon, Litecoin, Shiba Inu, and BNB. Among the gainers, Dogecoin gained roughly 1%.

The worldwide cryptocurrency market cap was trading much lower, falling to $1.03 trillion after decreasing about 1% in the previous 24 hours. However, total trade volumes increased by up to 65% to $35.17 billion.