Bitcoin Retraces to $60K as Regulatory Hurdles Stifle Altcoin Growth
Bitcoin (BTC) fell below the crucial $60,000 price level for the first time since September 18, sparking speculation about potential further downside. The leading cryptocurrency is currently trading at $60,800, down 2.3% over the past 24 hours, according to data from TradingView.
BTC/USD Technical Analysis Points to Potential Further Decline
Crypto trader Justin Bennett highlighted in a recent X (formerly Twitter) post that the “first BTC target at $59K [has been] reached, $57K next?” Bennett added that it remains unclear whether there will be a bounce before reaching the $57,000 level.
This price decline comes despite October historically being one of the strongest months for Bitcoin. Onchain analytics provider Santiment noted on October 4 that mentions of “Uptober” have significantly decreased since the beginning of the month, potentially signaling waning enthusiasm among traders.
Regulatory Uncertainty Stunts Altcoin Growth
While Bitcoin faces its own challenges, the altcoin market is grappling with regulatory hurdles that are hampering growth. CryptoQuant founder and CEO Ki Young Ju explained in an October 9 X post that “some altcoins with real value aren’t rising due to regulatory hurdles.”
Ju suggested that projects are cautious and holding back on maximizing revenue due to ongoing regulatory uncertainty. He opined that if Donald Trump were to win the upcoming United States presidential election on November 5, “alts could rally.” However, he cautioned that for now, buying altcoins is “pure speculation in an unregulated market.”
The impact of regulatory actions on altcoin prices has been evident in recent times. In April, Uniswap’s UNI token sank to a six-week low after the decentralized exchange received a proposed lawsuit notice from United States regulators.
Traders See Accumulation Phase in Altcoin Market
Despite the current challenges, some traders remain optimistic about the long-term prospects of the altcoin market. MN Trading founder Michael van de Poppe stated in an October 10 X post that the “altcoin markets are still in accumulation.”
Van de Poppe added that “the start of a bull cycle is super boring, as it slowly grinds upwards and nothing more.” He anticipates that “vertical stages” in the market are “probably” coming in Q1 2025.
Meanwhile, Signal Profits co-founder Jacob Canfield observed that “a handful of altcoins and a lot of memecoins are holding the altcoin market up.” Canfield predicts that “you’ll see memes go to $5-$20 billion when Bitcoin dominance gets a real rejection.”