The crypto market rebounded from the shocks earlier in the week after US inflation data for January suggested that inflation is likely to remain higher than expected. The headlines surrounding US regulators attacking stablecoins are spooking investors.
Bitcoin recaptured the $22,000 mark as the top crypto token moved higher after jitters earlier in the week. Its largest pair, Ethereum, jumped more than 3 percent to stay near the $1,550 mark. However, a handful of altcoins outperformed blue chip coins and gained as much as 25 percent.
After US Consumer Price Index (CPI) data for January showed lower-than-anticipated inflation, several cryptocurrencies saw a surge. Bitcoin, which had been struggling for the past few days, has seen a surge and is currently trading above the $22,000 threshold, said Edul Patel, co-founder and CEO of Mudrex.
โThe next resistance for BTC is now at the $22,260 level, while support lies at the $22,000 level. Furthermore, Ethereum mirrored Bitcoin's rise, rallying to the $1,500 threshold. Despite minor gains , the overall market momentum is leaning slightly to the downside," he said.
Except for Tether, the stablecoin pegged to the US dollar, all the major crypto tokens traded with big gains on Wednesday. Cardano rallied more than 8 percent, while Polygon was up 6 percent. Litecoin gained more than 5 percent and Avalanche was up 4 percent on the day.
The global cryptocurrency market capitalization was trading above the $1.02 trillion mark, gaining more than 2 percent in the past 24 hours. However, total trading volumes were almost flat, rising just 3 percent near $57.92 billion.
Increased pressure from the SEC and crypto market regulation, such as scrutiny of stablecoin securitization, could lead to further volatility and uncertainty in the market, said Sathvik Vishwanath, co-founder and chief executive of Unocoin.
"The Fed's preferred inflation gauge, the Personal Consumption Expenditures Price Index, or PCE, comes out on February 24. The next CPI report is due on March 14. Yesterday's CPI was 6, 4 percent," he said.
cryptographic updates
Paxos, the issuer of the $16 billion Binance USD (BUSD) stablecoin, has burned more than $700 million worth of BUSD tokens since Monday. That's when Paxos announced it would stop issuing the cryptocurrency amid mounting regulatory pressure, blockchain data shows.
Siemens, Germany's third-largest publicly traded company by market capitalization, issued its first digital bond in an attempt to cut paperwork and reach potential buyers directly.
Technological view of Giottus Crypto Platform
Bitcoin (BTC) is currently trading above $22,000, down 5% on a weekly basis. Today, BTC had something of a rally in the short periods of time after the US inflation data was released. And with a ton of support ahead, BTC may be poised for a promising uptrend.
It has now reclaimed the $22,000 mark after trading mostly below it for the past week, which should now act as support. BTC's 50-day and 200-day moving averages (at $20,656 and $19,694, respectively) should ensure it doesn't dip too far below.
An uptrend line that has held since November will also act as strong support. Bears should be careful making a move on BTC from now on. BTC's recent high at $24,255 will be the zone of strong resistance.
main levels
Resistance: $24,255, $25,000
Support: $22,000, $20,656, $20,000
(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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