The cryptocurrency market was trading in the green on Wednesday, buoyed by gains in Bitcoin (BTC), Ethereum (ETH), Binance (BNB), Cardano (ADA), Solana (SOL), among other coins. The global crypto market capitalization is at $1.03 trillion, up 2.12% from the last day, according to Coinmarketcap.com at 6:00 AM EST. m. IST.
Bitcoin, the biggest cryptocurrency By market value, it returned to trading above the $22,000 price level as concerns of an increasing crackdown by regulators subside.
BTC jumped as much as 3.2% to $22,323 during New York trade, after turning negative early in the session. For the most part, Bitcoin has traded below that level since a series of regulatory actions were recently unveiled.
โMost cryptocurrencies rallied following the US Consumer Price Index (CPI) data for January, where inflation fell less than expected. Bitcoin has rebounded from recent lows and is currently trading above of $22,000. The next resistance for BTC now lies at the $22,260 level, while support lies at the $22,000 level," said Edul Patel, co-founder and CEO of Mudrex.
On the other hand, Patel said, Ethereum also rallied back above the $1,500 level, in line with Bitcoin. However, despite the small gains, the overall market momentum is slightly bearish, he added.
cryptocurrency prices
Meme Dogecoin gained around 1.50%, while Binance Coin rose 2% and Ethereum rose 4.7%.
Solana (SOL) price was up 3.73 percent at $21.61 today.
Cardano (ADA) was up 7.77 percent at $0.3851.
Polygon MATIC was up 5.96 percent at $1.25.
Shawn Cruz, chief trading strategist at TD Ameritrade, said: "I find it interesting that you're seeing a rally in cryptocurrencies as the SEC continues to crack down on many of these businesses."
โI'm not entirely sure I expect that to stick around,โ Cruz added.
Several crypto tokens fell earlier on Monday, with exchange Binance's native token falling the most since the market crash in November.
The New York State Department of Financial Services ordered Paxos Trust Co to stop issuing new tokens of the third-largest cryptocurrency stablecoin, a Binance-branded coin known as BUSD that has approximately $16 billion in circulation.
Paxos stated that the US Securities and Exchange Commission had notified the company of a possible enforcement action. Kraken reached a settlement with the SEC last week.
Meanwhile, cryptocurrency-related stocks are also up, with Coinbase Global halting a seven-day slide, while MicroStrategy is up around 9%.
Bitcoin spent most of 2022 trading alongside stocks, especially shares of tech companies. They all got hit when the Federal Reserve began a campaign of raising rates and reducing liquidity to control inflation.
The correlation broke when FTX crashed and crypto crashed, only to return in the new year. The S&P 500 has added nearly 8% this year, while the tech-heavy Nasdaq 100 has advanced 15%. Bitcoin is up 34% this year, after falling 64% in 2022.
Crypto investment firm Satori Research CEO Teong Hng said: โWe have observed that crypto markets tend to perform well during US time, a sign that institutional investors may be behind buying interests. ".
With agency inputs
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