Bitcoin Hovers Near $42K; Fed Meet In Focus
By Laxmikant Khanvilkar
Virtual digital assets (VDA) are witnessing a mixed trend on Monday morning as investors focus to eventful week beginning with major tech earnings, Federal Reserve interest rate decision accompanied by significant data releases including nonfarm payrolls data, ISM manufacturing PMI, job openings, etc. The investors will be looking for signals about the timing of rate cuts this year.
Interestingly, the recent trend reversal in Bitcoin (BTC) price will go through a test once again the key announcement will pose a challenge for global risk appetite while setting the stage for a pivotal next week.
Against that backdrop, Bitcoin, the largest cryptocurrency by market capitalisation, is attempting to reclaim $42,000 mark after dropping below $39,000 in the previous week. The grand old cryptocurrency was recently changing hands 0.06% lower at $41,957. It may be remembered that bitcoin lost nearly 20% on its peak following the listing of the first spot bitcoin ETFs in the U.S. two weeks ago.
The selling pressure was partly triggered by traders unwinding their positions in the Grayscale Bitcoin Trust GBTC, which in January converted from a close-ended trust to an ETF, to double their profits.
Ethereum (ETH), the second largest cryptocurrency, continues to trade lower. It recently traded at $2,257 losing 0.43%.
Meanwhile, broader markets are experiencing mixed trend. Binance’s BNB token, Solana’s SOL, Cardano’s ADA and Avalanche’s AVAX are showing signs of strength.
The global crypto market cap decreased 0.45% to $1.61 trillion in the last 24 hours. On the other hand, the total crypto market volume rose 31.6% to $42.3 billion. Total volume in DeFi is currently $4.5 billion, and all stablecoins are $37.6 billion, representing 10.6% and 88.8%, respectively, of the total crypto market 24-hour volume. Bitcoin’s dominance is currently 50.9%, showing an increase of 0.06% over the day.
The IC15 index, the barometer of the top fifteen tokens, edged 0.07% lower to 53,740.
Meanwhile, the group of recently launched spot bitcoin exchange-traded funds (ETFs) are seeing combined negative flows for the first time since they opened for trade on Jan. 11. However, the BlackRock iShares Bitcoin ETF (IBIT) on Friday became the first of the recently launched spot bitcoin products to reach $2 billion in assets under management (AUM).
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