Crypto Rally Hits A Bump; BTC Skids Below $24k
By Laxmikant Khanvilkar
The euphoria over slew of positive economic data points seems to have lost as investors are reminded of industry specific problems by the analyst downgrade of Coinbase, the company which is on the buying list of Cathy Woods.
Investors were also forced into rethinking about persnickety inflation, Fed monetary policy apart from the crypto industry woes.
Bitcoin, the largest digital asset by market capitalization was recently trading at about $23,618, down 4.8% over the past 24 hours and well off its high earlier in the day above $25,100. That mark represented BTC’s first sojourn above $25,000 since August, reflecting rising optimism about inflation and the economy.
But both seemed to vanish in the space of a few hours as an unexpected 0.7% month-over-month spike in January’s Producer Price Index (PPI) suggested that U.S. central bank monetary had not yet succeeded in taming price increases that have bedeviled the economy for more than a year.
Ether followed a similar path to BTC, rising well above $1,700 for the second consecutive day before retreating. The second largest crypto by market capitalization was recently changing hands at about $1,650.
Other major cryptos also seesawed with APT, the token of layer 1 protocol Aptos, recently sinking 7.9% after rising more than 9% earlier in the day. MATIC, the native crypto of layer 2 blockchain Polygon Network was up over 6.3%, despite paring gains from earlier. Popular meme coins DOGE and SHIB were both firmly in the red a day after rising handsomely.
The global crypto market cap has decreased by 3.57% in the last 24 hours and is now at $1.08 tn. The total crypto market volume in the same period has seen an increase of 20.91%, amounting to $81.96 bn. DeFi currently makes up 9.86% of this volume with $8.08 bn, while stable coins account for 92.18% at $75.55 bn. Bitcoin’s dominance has dropped by 0.40% and is currently at 42.36%.
Meanwhile, the U.S. Securities and Exchange Commission (SEC) sued Terraform Labs, the company behind the failed TerraUSD stablecoin, and its co-founder Do Kwon on charges of misleading the investors on a number of issues, including who was using TerraUSD for payments.
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