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The cryptocurrency market turned red on Wednesday with the total market capitalization dropping over 3% to $2.048 trillion as positive United States macro data failed to support the bulls.
In this article we look at the current state of the market and how it has impacted some of the popular tokens like THETA, TRX, and XTZ.
Today’s drop erased the gains from the previous day with $160.64 million flowing out of the cryptocurrency market.
The bearish sentiment was reflected in Bitcoin’s price which tanked 1.6% over the past 24 hours to $55,926 at the time of writing.
According to CME group’s FedWatch Tool, the odds of a 0.25% rate cut were at 81% at the time of writing, suggesting a growing expectation for a more accommodative monetary policy.
While this should translate to increased demand for risk assets like Bitcoin, that hasn’t been the case.
Adding to the pain, ‘pro-crypto’ president Donald Trump not mentioning cryptocurrencies during the September 10 presidential debate also contributed to the downward momentum.
Bitcoin traders on X weren’t expecting green charts at the moment with crypto analyst Nihilus suggesting that BTC could drop somewhere between the $44,000 – $45,000 mark before an upward move can be expected.
Similarly, crypto trader Roman expects Bitcoin to retest the $55,000 level, viewing the token’s recent rally as a “dead cat bounce” and anticipating further downside before finding solid support.
While Bitcoin struggled to find support amid macroeconomic uncertainties, other cryptocurrencies like THETA, TRX, and XTZ are also faced challenges.
TRX
Tron (TRX) barely made it to the greener side of the charts and was up 0.1% over the past 24 hours.
At the time of writing the altcoin was priced at $0.1531, after trading between a weekly range of $0.1472 – $0.1551.
TRX has been riding the hype around the launch of Tron’s token deployer SunPump, which led to increased on-chain activity and played a major role behind the 20.1% profits the altcoin has posted over the past 30 days.
Source: CoinMarketCap
However as the hype faded, TRX, which had climbed to the top 10 cryptocurrencies by market cap, dropped to the number 11th spot, with the daily trading volume also dropping 1% over the past 24 hours.
Yet some analysts on X remain bullish about TRX and expect the token to hit a new all-time high this quarter.
THETA
Theta Network (THETA) has fallen 2.3% over the past day exchanging hands at $1.16 at press time.
The cryptocurrency has dipped 19% lower than its August high of $1.44. At press time, THETA’s market cap stood at $1.16 billion while its daily trading volume was hovering around $13.9 million.
Source: CoinMarketCap
Theta Labs has recently entered into a multi-year partnership with Seoul Women’s University, offering the university’s AI research lab access to the decentralized GPU computing power provided by Theta EdgeCloud.
This followed similar deals with other South Korean universities over the past month, which has been well received by the project’s community, but has failed to push the price of THETA.
Some analysts expect an upside breakout from a descending channel pattern the token has been forming on the 2-day timeframe for THETA, suggesting a potential shift toward bullish momentum as buyers gain strength, potentially leading to further price appreciation.
XTZ
Tezos (XTZ) has slumped 16% lower than its August high of $0.754, holding at $0.632 at press time.
The token saw an uptick in its trading volume which stood at $13.79 million.
During the same timeframe, XTZ’s market cap fell by 2% to $630 million, in line with the broader decline in the global crypto market.
Source: CoinMarketCap
However, the network has experienced growth with its total value locked jumping 42% in the second quarter of 2024.
Tezos’ 16th on-chain upgrade, the Paris upgrade, also went live in June, reducing block time to 10 seconds.
The update also revamped the staking and issuance model to align with DeFi and on-chain security needs.
Additionally, Tezos launched Etherlink in mainnet beta, integrating over 50 projects to power a fast and efficient Layer 2 solution.
These positive developments are yet to translate into a price appreciation for XTZ.
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