Bitcoin, Ether Brace For Action Ahead Of Key Events
By Laxmikant Khanvilkar
Virtual digital assets (VDA) have started the week on a firm note, with prices of Bitcoin (BTC), Ethereum (Ether) and certain large cap cryptocurrencies, especially meme coins, collecting gains.
The trading started against the backdrop of macro environment that remains submissive to central bank policy decisions, Nvidia’s closely watched developer conference and oil prices too.
Last week, Bitcoin’s (BTC) saw a sharp correction after hitting a fresh all-time high. Hotter-than-expected U.S. inflation readings led the dip in prices as the key barometer of Federal Reserve decision making tool suggested that central may deal interest rate cut. The meeting later this week.
Bitcoin, the largest cryptocurrency by market capitalisation, is currently trading at $66,938 up 2% in the past 24-hours, after being through volatile trade last week.
Bitcoin received support from JPMorgan report that argued the top token become investors darling in recent times. It said, adjusting for volatility, Bitcoin’s allocation in investor portfolios has already outpaced that of gold. Bitcoin has a 3.7 times greater allocation compared to bullion considering the net inflow of $9 billion into Bitcoin ETFs since their inception. Apparently, Bitcoin ETF market size has a potential to reach $62 billion if gold is used as a benchmark.
Another important aspect turning in favour of bitcoin is the BTC/USD pair stabilising a little over the weekend.
In case of broader market, they are continuing to reflect similar pattern. Large altcoins including ether (ETH), ripple (XRP), Cardano (ADA) and Dogecoin, Shiba Inu recorded gains in the last 24-hours.
Ether, the second largest cryptocurrency by market capitalisation, moved lower after completing the Dencun upgrade. Today, it is seen making positive move and was recently changing hands at $3,595, up 2%.
The global crypto market cap increased 2.6% to $2.58 trillion in the last 24 hours. On the other hand, the total crypto market volume fell 11.7% to $127 billion. Total volume in DeFi is currently $11.4 billion, and all stablecoins are $113.7 billion, representing 8.9% and 89.3%, respectively, of the total crypto market 24-hour volume. Bitcoin’s dominance is currently 51.9%, up 0.1% over the day.
The IC15 index, the barometer of the top fifteen tokens, rose 2% to 87,752.
Meanwhile, last week the crypto-tracked futures suffered over $800 million losses, the second-largest figure this year. Longs, or bets on higher prices, suffered $660 million in liquidations, likely contributing to the sharp downturn. Liquidation occurs when an exchange forcefully closes a trader’s leveraged position due to a partial or total loss of the trader’s initial margin.
In other news, the U.S. prosecutors urged a federal judge to sentence Sam Bankman-Fried to 40-50 years in prison and $11 billion in fines and forfeiture.
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