Bitcoin, Ethereum Edge Lower, Rally Takes A Pause
By Laxmikant Khanvilkar
Leading cryptocurrencies nudged lower in the past 24 hours as recent gains has given way profit taking. The most popular cryptocurrency Bitcoin reported biggest one week gain in almost two years. Last Saturday’s surprise rally saw the currency briefly eclipsing $21,000 mark.
“Bitcoin just had the biggest weekly gain in 100 weeks (since Feb 2021)” one among many fan Tweet mentioned while celebrating the recent uptick.
The most common explanation for Bitcoin’s bounce back is a spate of positive macroeconomic news, notably reports that inflation is easing.
According to the quant analyst the recent surge might be driven by futures traders looking to exploit short-term liquidity gaps at a time when a number of big players have left the crypto market. This could mean the recent rally is a temporary blip rather than a broader return of investor confidence. The analyst, however, believes that the market is near the bottom.
The total market capitalization of the global cryptocurrency market is currently $981.56 billion, representing a 0.15% decrease compared to the last 24 hours. The total trading volume of all cryptocurrencies within the same time period decreased by 42.81%, now at $45.75 billion. Of this, decentralized finance (DeFi) tokens account for 11.42%, while stablecoins make up 87.37%. Bitcoin’s market dominance is currently at 40.92%, dropping by 0.09% within the last day.
Meanwhile Anthony Scaramucci called 2023 a “recovery year” for bitcoin and predicted it could trade at $50,000 to $100,000 in two to three years.
Also doubling down on his love for Bitcoin, Mark Cuban hoping to purchase more of the world’s number one digital currency by market cap should it drop even lower.
Investors will continue to watch outcome of Bank of Japan’s announcement on Tuesday.
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