Bitcoins Recuperates Near $27K
By Laxmikant Khanvilkar
Virtual digital assets or VDAs are trying to recuperate weekly losses after suffering from a liquidity pressure and increased volatility last week. This morning, Bitcoin (BTC) – the largest cryptocurrency by the market capitalisation was trying to reclaim $27,000 mark. It was recently trading up 0.22% at $26,784.65.
On Saturday, BTC briefly hit a low of $25,833.34 the lowest level since March 17. It marked biggest weekly loss of 11.25%, the worst week since November 11.
Ethereum (ETH) hovers near $18,000. The second largest cryptocurrency by the market capitalisation was last quoting at $1,790.82, down 0.49%.
The Crypto markets are facing several issues right now including low liquidity, a crackdown on the industry from regulators in the U.S. and macroeconomic worries, analysts said.
Bitcoin is up around 59% this year but prices have remained volatile, with low liquidity exacerbating moves higher and lower.
Clara Medalie, director of research at Kaiko, said there has been a “notable drop in market depth” for bitcoin.
Market depth refers to a market’s ability to absorb relatively large buy and sell orders.
The liquidity situation has probably worsen after Bloomberg reported that Jane Street and Jump Crypto, two of the biggest crypto market makers, have decided to step back from crypto trading in the U.S. as the country’s regulators continue their crackdown on the nascent industry.
The global crypto market cap edge up 0.08% to $1.12 tn, over the last 24-hours.
The total crypto market volume, however, decreased 1.57% to $22.28 bn, of which DeFi volume currently stands at $1.47 bn, or 6.61% of the total crypto market volume. The volume of all stablecoins is now $19.51 bn, which is 87.58% of the total crypto market volume.
Bitcoin’s dominance is currently 46.29%, a decrease of 0.02% over the day.
IC15 – the barometer of top fifteen tokens – was at 37,574.24 points, up 0.24%.
Meanwhile, an interesting debate was raging over BTC Ordinals BRC 20 token. Many participants are demanding to impose censorship on minting BRC 20 tokens via the Ordinals protocol, which clogged the Bitcoin network and sent transaction fees sky-high.
The debate is playing out on the bitcoin-dev mailing list, which hosts discussions about Bitcoin development. Opinion is divided on whether more drastic steps should be taken to curb the sudden surge in BRC-20 mints.
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