Bitcoin Off 9-Month High
By Laxmikant Khanvilkar
Cryptocurrencies scripted strong comeback led by modest growth in the U.S. inflation alongside banking sector’s continued rebound from near disaster.
Bitcoin, the most popular cryptocurrency, scaled above $26,500 mark for the first time in nine months before losing some of its gains.
The largest cryptocurrency by market capitalization was recently trading at $24,700, up over 2% in the past 24 hours. At one point on Tuesday, BTC had risen by double digits for a second consecutive day.
Moderation in the U.S. inflation during February to 6% from January’s 6.4% reading, ignited rally in risky assets amid hopes of Federal Reserve would take a pause in rate hike.
Analysts said that the bitcoin’s pullback late Tuesday indicated that the cryptocurrency has got ahead of itself with short covering after pushing through key $25,000 resistance for traders.
Apparently, the crypto market capitalization has grown to $1.09 tn, representing a 1.87% increase over the last 24 hours. The total crypto market volume during this period has risen to $100.94 bn, representing a 5.16% increase. Of this volume, DeFi accounts for 9.20% ($9.29 bn), with stablecoins making up the remaining 92.96% ($93.84 bn). Bitcoin’s dominance rate is currently 43.68%, reflecting a 0.22% increase since yesterday.
Some analysts are changing the narrative of Bitcoin saying that the Bitcoin is now trading as an alternative currency as the Fed pivot narrative remains strong in the crypto community. It has stopped trading as a ‘risk-asset’, they asserted.
Ether (ETH), the second-largest cryptocurrency, also surged in the morning but then retreated. ETH was recently changing hands at $1,705, up 1.5% for the day.
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