BTC Remains Neutral Amid Market Volatility, Satoshi’s Identity, and More: Oct 9

BTC has neutral sentiments, and bullish investors should be cautious. Speculation over Bitcoin creator Satoshi Nakamoto intensifies ahead of HBO's new documentary. Meanwhile, Cardi B's WAP token is linked to a crypto scam, the Supreme Court clears the sale of Silk Road Bitcoin, and FTX moves forward with its bankruptcy plan.

The crypto market showed neutral sentiments today as major coins experienced price small decreases. The Crypto Fear & Greed Index stayed at 49 today, still lingering in the 'Neutral' zone. Bitcoin (BTC) remains volatile this week, but showing clear signs of rally potential.

Quick Market Updates

​​Prices (UTC+8 8:00): BTC: $62,163, -0.10%, ETH: $2,440, +0.74%

24-Hour Long/Short Ratio: 49.5%/50.5%

Fear and Greed Index: 49 (Neutral, unchanged from 24 hours ago)

Crypto Fear and Greed Index | Source: Alternative.me

Federal Reserve officials have been quite busy in recent times with their number of speeches that show indications of future monetary policy shifts. John Williams, one of the influential FED officials, showed confidence in the US economy and thought it is "prepared for a soft landing." He supports the 25-bps rate cut for November, which is a cautious approach towards economic stability.

Market participants continue to look forward to further details from the coming Fed minutes happening tomorrow. Further, added to this will be the US Consumer Price Index inflation data scheduled for Thursday, which becomes important to interpret the trend of inflation and consequent decisions on rates.

US stocks trended higher in financial markets, and with the comments of the Fed officials, it would seem that their comments were well-received by the markets. The ETH/BTC exchange rate climbed to 0.0395, increasing by about 1% in the past 24 hours and indicating a subtle shift in market dynamics between the two leading cryptocurrencies.

Top 24-Hour Performers

Trade now on KuCoin

1. The HBO documentary “Money Electric: The Bitcoin Mystery” will reveal the identity of Bitcoin’s founder, Satoshi. Google and Twitter trends show a surge in interest in Satoshi Nakamoto.

2. The ban on social media platform X has been lifted, and the Brazilian market for X may restart. 

Crypto heat map | Source: Coin360

Speculation surrounding the identity of Satoshi Nakamoto, Bitcoin's enigmatic creator, is intensifying as HBO prepares to release its documentary Money Electric: The Bitcoin Mystery. Researchers from 10x Research revisited two main theories: one that points to cryptographer Nick Szabo, and another suggesting the involvement of the US National Security Agency (NSA). Szabo's proposed "Bit Gold" in the 1990s closely resembles Bitcoin, making him a prime candidate, while the NSA's expertise in cryptographic technology raises questions about its possible role in Bitcoin's inception.

As the Oct. 8 broadcast date approaches, Polymarket odds shifted, suggesting that Bitcoin pioneer Adam Back might be the focus of HBO's documentary. Whether Szabo, Back, or the NSA is unveiled, the speculation has reinvigorated debate within the crypto community.

On Oct. 8, Cardi B’s official X account shared a promotional post for a cat-themed memecoin called WAP (an acronym for her hit song Wet Ass Pussy). Along with the post, Cardi B shared a wallet address. Blockchain investigators quickly flagged the address, revealing its ties to several fraudulent crypto projects, including rug pulls.

Source: X | Cardi B

According to BubbleMaps, 60% of the WAP token supply was bundled at launch, with $500,000 worth of tokens dumped within hours. Pseudonymous sleuth Wazz and crypto investigation firm PeckShield believe Cardi B’s X account may have been hacked and used by scammers to promote the token. The situation highlights ongoing risks in celebrity-endorsed crypto projects, where scammers leverage star power to attract unwitting investors.

The US Supreme Court has declined to hear a case over 69,370 Bitcoin seized from the infamous Silk Road marketplace. The Bitcoin, valued at $4.38 billion, had been claimed by Battle Born Investments, which argued it purchased rights to the crypto through a bankruptcy claim. However, both lower courts ruled against Battle Born, and the Supreme Court’s refusal to hear the case clears the way for the US government to sell the Bitcoin. 

With the legal battle over, the government is expected to liquidate the remaining Silk Road-linked Bitcoin, following an earlier sale of $2 billion worth of assets in July.

FTX has reached a milestone in its bankruptcy process. On Oct. 7, US Bankruptcy Judge John Dorsey approved the crypto exchange’s liquidation plan, allowing FTX to repay its users and creditors. The plan covers 98% of FTX users, with repayment potentially exceeding the total value of claims for non-governmental creditors.

The approval comes nearly two years after FTX’s collapse, often dubbed the "Lehman moment" for the crypto industry. With this plan, FTX can distribute more than $16 billion to its creditors, bringing closure to one of the largest financial collapses in crypto history.

The Crypto Fear and Greed Index, a barometer for investor sentiment, currently shows a neutral outlook, reflecting uncertainty in the market. Recent fluctuations in Bitcoin’s price have caused concern among investors, but historical data suggests a potential bullish breakout if the price moves beyond key resistance levels. Market watchers are eyeing the $58k to $60k price range for buying opportunities, while a rise beyond $66k could ignite a stronger rally.

The Bitcoin market is at a pivotal point since the Crypto Fear and Greed Index, which measures market sentiment, remains neutral which reflects indecision amongst investors. This balance suggests that traders are waiting for a clear directional signal before making significant moves.

The key support level for Bitcoin currently sits between $58,000 and $60,000. Trading below this level, if the price holds within the above-mentioned range, will indicate stability and can create a good buying opportunity toward lower level entry. On the downside, a downward trend could bring further decline with the next important support being close to $55,000. To the upside, the vital resistance level falls between $66,500 and $67,000. Bitcoin has already tested this resistance level but was rejected previously. A decisive break above this range may generate formidable buying momentum, which could propel the price toward $70,000.

Several indicators give an insight into the present condition of Bitcoin. The RSI is at 52, and conditions are neutral. What that means is that the market isn't overbought or oversold, and no trend has shown its way. If the RSI should happen to rise above 70, this would mean that Bitcoin is in overbought territory, which might result in a price correction.

Source: BTC/USDT on TradingView

On September 18, the midpoint of the descending channel was broken. A rally approached the channel's highs but faced rejection. Since then, the $64,000 zone has turned into a resistance level. The Chaikin Money Flow (CMF) is -0.09, indicating capital outflow from the market. This could be seen as an ominous suggestion that confidence among investors is falling, with increased selling pressure. On-Balance Volume (OBV) showed consistent selling during the past two weeks; in the last few days, however, there has been some slight recovery, so maybe some buying interest is re-returning. However, in their entirety, these indications still point toward caution for investors to stay vigilant.

On the other hand, if the bullish case were to happen, a Bitcoin breakout above $67,000 might trigger a rally that traders can look forward to. This happens because when such a breakout happens, there's normally an increase in buying volume that shoots the price upwards. This would turn into a decline that can drive the price of Bitcoin down to around $55,000 or even lower. While the current indications of the CMF and OBV show weakness, traders should be aware that at any time soon, downward pressure may be applied.

Another measure is the Tether Dominance Index (USDT.D), indicative of money flowing into stablecoins. This normally moves upwards during a bear market, where investors are flowing into stablecoins to reduce risk. The uptrend at present would show that caution is dominating, and until this is broken in the uptrend, traders might need to set more conservative bullish targets.

Read more: Crypto Daily Movers October 7: Bitcoin Breaks $63,000, Technical Analysis of APT, WIF, and FTM

With the Satoshi Nakamoto HBO documentary about to drop, there's more speculation from Nick Szabo to the NSA about who he really is. In contrast, Cardi B with her WAP token shows the fallacies of celebrity endorsements in the use case, while it also serves as yet another reminder for investors to do their due diligence. From the Supreme Court's ruling on the Silk Road Bitcoin to the approved bankruptcy plan for FTX, legal sea changes keep coming in waves. While the crypto market will have to sail through such complications, the investor should be quite aware and prepared to understand how the combined influence of celebrities, the regulatory change in laws, and market dynamics shapes this ever-changing layout. Keep up with daily KuCoin News for the latest crypto trends!