In cryptocurrencies, the price of Bitcoin extended declines today after snapping a rare 14-day winning streak as a cautious mood supplanted the risk appetite that propelled a variety of assets earlier in the year. The world's largest cryptocurrency was trading around 3% lower at $20,759. The global crypto market capitalization today is down nearly 4% in the last 24 hours to $1 trillion, according to CoinGecko data.
โMost cryptocurrencies saw a decline as the market reacted to the US crackdown on the Bitzlato exchange. Bitcoin briefly broke above its resistance at $21,480 but was unable to sustain gains, potentially attracting profit-taking by short-term traders. If it can rise above $21,400, it can attract buyers and drive the price even higher. Ethereum managed to break above its resistance at $1,600 but failed to close above it. Its immediate support is now at $1,490 and its resistance is at $1,550," said Edul Patel, CEO and co-founder of Mudrex.
Bitcoin's 14-day Relative Strength Index has fallen from above 90 but remains above 70, the threshold for so-called overbought conditions, Bloomberg reported. To some strategists, that hints at the possibility of a pause in Bitcoin's advance by 2023.
On the other hand, Ether, the coin linked to the ethereum blockchain and the second largest cryptocurrency, also fell more than 4% to $1,526. Meanwhile, the dogecoin price today was also trading 6% lower at $0.08, while Shiba Inu was down more than 11% at $0.000011.
Today's performance of other cryptocurrency prices also fell as prices for Tether, Stellar, XRP, Polkadot, Chainlink, XRP, Solana, Avalance, Polygon, Apecoin, Tron, Solana, Litecoin, Uniswap traded with cuts in last 24 hours.
Bitcoin and a gauge of the top 100 tokens are up more than 20% this year, easing at least a small part of last year's digital asset slide. Much of that has been driven by the view that debilitating interest rate hikes are coming to an end as inflation cools. Cryptocurrencies have lost around $2 trillion since a peak in November 2021. The cryptocurrency sector also continues to deal with the fallout from the FTX exchange crash.
(With agency contributions)
The opinions and recommendations made above are those of individual analysts or brokerage firms, and not of the Mint.
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