After a sharp rise the day before, the crypto market gave back some gains on Friday after inflation figures in the world's largest economy spooked traders. The US Federal Reserve's monetary policy and the crypto industry's own woes are likely to guide the markets in the near term.
Bitcoin briefly touched the $25,000 level on Thursday, marking its highest point in the last six months before dipping below $24,000. This decline comes after the release of the unexpected rise in US Producer Price Index (PPI) data, suggesting that the February US failed to rein in price increases, Edul said. Patel, co-founder and CEO of Mudrex.
โDespite this setback, BTC has seen a 73 percent rise from its lowest point in the last month. Ethereum has followed a similar pattern, breaking above $1,700 before falling back to $1,600. Investors are every increasingly concerned about inflation and monetary policies after the release of the PPI data," he said.
Bitcoin breached the $24,000 mark as the largest crypto token fell more than 3 percent in the last 24 hours. Its largest pair, Ethereum, managed to stay above $1,650 even as the token declined 2 percent. The pain between various altcoins was severe.
Except for US dollar-pegged stablecoins and Polygon, all other major crypto tokens were trading in the red. Solana, Tron, Avalanche and Shiba Inu each sank 5 percent, while Dogecoin and BNB rose 4 percent each. Polygoin, the only winning altcoin, was up more than 4 percent.
The global cryptocurrency market capitalization was trading considerably lower, at $1.09 trillion, falling as much as 3 percent in the past 24 hours. However, total trade volumes were up more than 13 percent to close to $81.11 billion.
cryptographic updates
The uncertain future of the embattled stablecoin Binance USD is causing discord in dollar-pegged crypto markets that one analyst says could accelerate into a dramatic shakeup of the sector's big winners and losers.
Analysis by Binance Research has found that a notable minority of ether holders who staked their ETH on Ethereum's Beacon Chain over the past three years are making money, while the rest are underwater.
The crypto market is struggling with an 'Alameda Gap', where several projects are postponing their token release plans due to a lack of liquidity despite rising bitcoin and ether prices.
Note: Price change in the last 24 hours
Technological view of Giottus Crypto Platform
Ethereum (ETH) is currently trading around the $1,660 mark, up 7% from last week. ETH claimed a macro gold pocket at $1,702 yesterday for a brief period and was trading at a high last seen five months ago.
While it struggled to hold its price overnight, ETH may still be in a good position to test the next major resistance at $2,000, provided its current levels hold. However, decisively trading below the $1660 level for extended periods of time can send the message that this was a failed impulse move that was rejected by the market.
It is ETH's overbought RSI (near 80) and its 50-day and 200-day moving averages (both near $1,450) that may have forced an immediate correction. However, consolidation at current levels can certainly add fuel to the fire for a follow-through move.
main levels
Resistance: $1662, $1700, $2000, $2027
Support: $1,600, $1,550
(Opinions and recommendations provided in this section are those of analysts and do not represent those of Business Today. Please consult your financial advisor before taking any position in any of the listed assets.)
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