Crypto news: Cryptocurrencies are waiting for Wall Street opening

Bitcoin still has a clear problem with breaking above $20,000 which raises the risk of capitulation, the king of cryptocurrencies is trading at $19,200. Ethereum is holding near $1,300. Fear has gripped the markets over speculation surrounding the deteriorating financial health of Credit Suisse (CSGN.S), where credit default swaps (CDS) have risen unprecedentedly, climbing to record levels through 2009:

• The bank has nearly $1.5 trillion in assets under management. Credit Suisse is trading at a more than 80% discount to book value, although CEO Ulrich Korner pointed to the institution's strong position and commented on the stock market valuation as the result of 'internal and external speculation.' The bank is scheduled to present a new detailed strategic plan on October 27. European trading floors are losing, and a lower opening on Wall Street could reflect a sell-off in cryptocurrencies. CDS are traded derivatives that hedge against the possible insolvency of the underlying entity;
• The number of cryptocurrency billionaires on the list of the 400 richest people in the United States (Forbes) has dropped from seven in 2021 to four today. Total wealth also scored a drop from about $55 billion to $27 billion. At the same time, the value of cryptocurrencies fell from more than $3 trillion in November to just $900 billion today, according to Coinmarketcap data;
• The number of bitcoin so-called ATMs has also dropped. In August there were 38,776 (a record), now it's 37,890 according to CoinATMRadar data. So it turns out that 796 cryptocurrency withdrawal machines were removed in September - the biggest drop was registered in the US (825 machines removed), but Europe and Canada cushioned the picture somewhat with the installation of new bitcoin ATMs;
• U.S. Senator from Wyoming, Cynthia Lummis pointed out that she values in Bitcoin the fact that governments cannot confiscate the cryptocurrency or stop its development.Lumnis also stressed that the existence of Bitcoin 'comforts her' in the context of rising national debt and inflation. The senator also stressed the security afforded by Bitcoin in some countries where governments are able to confiscate property. In June, Lumnis, along with another senator, Kirsten Gillibrand of the Democratic party, created the Lumnis-Gillsbrand Responsible Financial Innovation Act. However, the bill is unlikely to pass by the end of 2022 due to the small amount of time and voluminousness. 
• Bitcoin has not managed to close the month (September) above $20,000. Investors, however, are eyeing $192,000 worth of standing buy orders executed by the whale on the FTX exchange, which gives the oversold market some hope for a rebound. The number of red monthly candles according to Japanese candles is already 10. In 2018, the market produced as many as 14 such candles from February 2018 to March 2019.
• Revealed evidence shows that the CEO of the collapsed Celsius platform, Alex Mashinsky paid out $10 million just weeks before the announcement of the platform's halt in payments. Celsius declared insolvency in June, a court document indicated, with $4.3 billion in assets and $5.5 billion in liabilities. Since the collapse of the Terra ecosystem, we have seen a veritable flood of negative news for the sector. Regulators are likely to focus on increased transparency and risk management.

The chart shows the average purchase price of Ethereum and Ethereum 2.0 (staked Ether on the Beacon chain) in the blockchain, which the on-chain metric refers to as the Realized price.  We can see that the price of Ethereum is below both the average purchase price of investors (blue line) and below the average purchase price of stakers (pink line) and maintaining the Ethereum network under Proof of Stake. The average purchase price of ETH 2.0 is close to $2,500, giving investors a loss of up to 50% at current valuations. Of course, it's worth mentioning that ETH stakers are not set on selling it at a higher price, but on receiving passive returns on a multi-year investment. However, we can see that the unrealized loss (into which a huge unrealized gain has turned) is weighing down and may eventually result in capitulation - the orange bars on the chart show this. Source: GlassnodeLooking hisotorically, October was a rather successful month for digital assets however, with the current macroeconomic conditions, it is hard to base any analytical conclusions on such simple indications. On the other hand, if Bitcoin permanently breaks through $20,000 the market will be more easily 'persuaded' to unwind by pointing to a statistically successful October. Despite the moderately successful volatility in Bitcoin's favor, October was often the defining month. In October, Bitcoin experienced one of the biggest crashes (-36% in 2018) and the biggest rally (449% in 2013). The chart shows the history since 2013. Source: Cointelegraph
The Fear and Greed Index continues to point to extreme levels of fear that have persisted in the market for days. Historically, such a long 'streak' of fear usually led to capitulation or a frenzied rally (if there was a catalyst). Currently, that catalyst could be a change in the Fed's monetary policy however, this is certainly not going to happen. Positive industry insiders have lost much of the impact on Bitcoin and other cryptocurrency quotes that we saw in the bull market. Source: alternative.meBitcoin price, H4 interval. The price is still moving below the 200-day average. Buyers are trying to hold support at the SMA50, which could give more fuel for an attack near $20,000. RSI looks neutral. A weak opening of Wall Street can make crypto weakening again.Source: xStation5