Crypto market stabilises as investors buy the dip, Bitcoin trades above $43K
Cryptomarket overview: After a major decline on Wednesday, the crypto market has rebounded with Bitcoin gaining more than 1 per cent in the last 24 hours. While other altcoins including ETH, Solana, and Litecoin showed minor gains since yesterday.
The Crypto Fear and Greed Index which fell below 70 points after yesterday’s performance is again back to 72 points, indicating the ‘buy the dip’ sentiment in the market.
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While talking to Republic Business, CoinDCX Research Team said, “Clearing and sustaining the current levels is essential to establish a positive momentum in BTC. ETH, trading above $2,250, displays a slightly bearish outlook in its price action and is currently below the 20EMA Daily. To initiate a positive trend, ETH needs to reclaim levels above $2,380. Altcoins are exhibiting mixed trading patterns.”
“Notably, today’s announcement of the US unemployment rate (monthly) has the potential to induce volatility in the market,” CoinDCX added.
Market awaits BlackRock’s Bitcoin ETF approval
Sourcing the internal sources, Sudeep Saxena, co-founder, CoinGabbar, said the decision on Bitcoin ETF approvals is expected to be announced soon. “With anticipation mounting for the US Securities and Exchange Commission’s (SEC) decision on spot Bitcoin ETFs scheduled for January 5, Bitcoin’s price has observed a discernible 1 per cent recovery in the last 24 hours. Internal sources indicate that the SEC could potentially commence notifications to spot Bitcoin ETF applicants regarding approvals as early as Friday.”
Parth Chaturvedi, Investments Lead, CoinSwitch Ventures said, “Recovering from the rumours surrounding spot ETF approvals, Bitcoin (BTC) has surged above $44,000 in a strong recovery. Reports indicate a significant shift in investor sentiment, with over $2 billion flowing into digital asset investment exchange-traded products (ETPs) in 2023—more than double the previous year’s inflow. This surge suggests heightened anticipation for SEC approval of ETFs.”
Talking about the overall market, Chaturvedi said, “The global crypto market cap is at $1.74 Trillion with a rise of 0.9 per cent in the last 24 hours. BTC dominated the trading volume capturing 49 per cent, whereas Ethereum (ETH) captured 15.5 per cent.”
Underlining the consolidation levels for Bitcoin, Edul Patel CEO of Mudrex said, “Bitcoin’s recovery from Wednesday’s crash boosted market confidence, with BTC currently consolidating around $43,500. The pending SEC decision holds potential significance for Bitcoin’s price, and the establishment of $43,900 as support, if successful, could indicate an uptrend upon closing above it.”
Vikram Subburaj, CEO, Giottus shared insights into the altcoin movement in the last 24 hours.
“Key altcoins had an overall green day with BNB registering a 2 per cent gain. Blackrock is expected to purchase $10 million worth of Bitcoin today for their ETF seed process which could lead to strong price action. The market will remain volatile in the next 5 days leading to the SEC’s decision on spot ETF. Key resistance levels for altcoins in case of a breakout are Ethereum ($2,275), Solana ($105), BNB ($340), Cardano ($0.6) and Avalanche ($40).”
In other news, Decentralized exchange dYdX published a post-mortem on the ‘targeted attack’ on its v3 platform in November that had resulted in a loss of $9 million in its insurance fund, which represented around 40 per cent of its total. It has identified the attacker and is examining legal options
