Bitcoin, Ether Nursing Losses Amid High Volatility
By Laxmikant Khanvilkar
Virtual digital assets (VDA) prices have eased lower in the last 24-hours as increased volatility ahead of the release of chip-maker Nvidia’s Q4 earning and FOMC minutes. The waiting game has so far played out negatively as investors are seen using price rally cash out. However, a crypto analyst has predicted that the price might continue to surge, highlighting the enduring strength of Bitcoin’s upward momentum.
Bitcoin (BTC) has further consolidated below $51,500 level even though the optimism over net inflows in the spot BTC exchange traded funds (ETFs) continued unabated. Last week, the ETF issuers collectively received over $2.4 billion. The trend demonstrates investor interest for such products. The grand old cryptocurrency is currently trading at $51,511 down 1.3%. Analysts have warned that if bitcoin fails to hold current levels there is potential for a more extensive price correction.
Price of ether (ETH), the native token to the Ethereum network, has moderated slightly after claiming $3,000 for the first time since April 2022. It quoted 2.1% lower at $2,937. The token added 12% in the past week, outpacing other cryptocurrencies. ETH surged nearly 30% since the beginning of 2024, BTC rose 22%.
Broader market are largely trending lower. Binance BNB token was moving higher while Solana, XRP and others were languishing in the negative territory.
The global crypto market cap decreased 1.3% to $1.97 trillion in the last 24 hours. Simultaneously, the total crypto market volume fell 11% to $81.1 billion. Total volume in DeFi is currently $5.9 billion, and all stablecoins are $74.4 billion, representing 7.3% and 91.7%, respectively, of the total crypto market 24-hour volume. Bitcoin’s dominance is currently 51.6%, up 0.07% over the day.
The IC15 index, the barometer of the top fifteen tokens, slumped 1.2% to 66,375.
Meanwhile, analysts expect broader crypto market rally could come to a halt if Nvidia’s (NVDA), the GPU giant that designs chips necessary for the AI revolution, fourth quarter earnings fail to live up to the lofty Wall Street expectations. As a major part of the S&P500 Index, Nvidia’s performance could set the tone for US equities in the near-term.
Nvidia’s performance will also influence artificial intelligence (AI) related tokens such as Ocean Protocol’s OCEAN and Fetch.AI’s FET.
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