Bitcoin holds $37K; DeFi tokens in limelight
By Laxmikant Khanvilkar
Leading virtual digital assets (VDAs), have more or less steadied the ship in the last 24-hours, after experiencing extreme volatility during this week that was led by ouster of Sam Altman – the ChatGPT creator – and Binance CEO Chengpeng “CZ” Zhao agreeing to relinquish his post in order to effect the largest settlement deal in the U.S. corporate history.
Bitcoin (BTC) is consolidating above $37,000 level and is higher for the week.
BTC initially slumped below $35,000 mark following the “CZ” decision. The world’s largest cryptocurrency has recovered and is currently rooted at $37,309 down 0.1%.
Ether (ETH) too succeeded in reclaiming psychologically important level of $2,000. It was currently offered at $2,065 up 0.5%.
Crypto markets witnessed huge selloff earlier this week on the leak of a potential massive settlement of U.S. criminal charges against Binance, the world’s largest crypto exchange.
CZ resigned from the company and pleaded guilty to several criminal charges from the Department of Justice.
However, the CZ striking a deal with the U.S. authorities, according to the market observers, has cleared the decks for the U.S. Securities and Exchange Commission (SEC) to finally approve a spot bitcoin ETF.
The optimism fuelled rally in the broader markets. Several Decentralised Finance or DeFi tokens have sprung to life in the last 24 hours. Uniswap governance token, UNI, climbed over 15%. FTX’s FTT token gained 10%.
As a result, the global crypto market cap eased 0.11% to $1.42 tn, in the last 24-hours. Similarly, the total crypto market volume eased 32.1% to $39.5 bn. The total volume in DeFi is currently $4.4 bn and all stablecoins $34.8 bn, representing 11.2% and 87.9% respectively, of the total crypto market 24-hour volume. Bitcoin’s dominance is currently 51.5%, down 0.13% over the day.
IC15 index, the barometer of top fifteen tokens, edged 0.05% lower to 47,333.
As the deeps are getting supported, analysts feel, the bitcoin is readying for a push to fresh yearly highs and towards a test of next key resistance in the form of the $40k barrier.
Amid the buzz around CZ leaving Binance, the concerns are brewing over risks to entire crypto ecosystem. The U.S. prosecutors have underlined a serious risk of flight if CZ allowed to leave the country.
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