Crypto Price Today: Bitcoin regains $22,000; Cardano, Avalanche, Polygain rally up to 8%
The crypto market recovered from the early week shocks after the US January inflation data, suggesting that inflation is likely to remain higher than expected. The headlines surrounding US regulators attacking stablecoins are frightening investors.
Bitcoin regained the $22,000 mark as the top crypto token moved higher after early week jitters. Its largest peer, Ethereum jumped more than 3 per cent to hold near the $1,550 mark. However, a handful of altcoins outperformed the blue-chip coins and gained up to 25 per cent.
After January’s US Consumer Price Index (CPI) data showed less inflation than anticipated, several cryptocurrencies experienced an increase. Bitcoin, which had been struggling for the past few days, saw a rise and is presently trading above the $22,000 threshold, said Edul Patel, Co-founder and CEO at Mudrex.
“The next resistance for BTC is now at the $22,260 level, whereas the support lies at the $22,000 level. In addition, Ethereum mirrored Bitcoin’s increase, bouncing back to the $1,500 threshold. Despite the minor gains, the market’s overall momentum is leaning slightly towards bearishness,” he said.
Barring the US dollar-pegged stablecoin Tether, all major top crypto tokens were trading with big gains on Wednesday. Cardano rallied more than 8 per cent, whereas Polygon surged 6 per cent. Litecoin gained over 5 per cent and Avalanche was up 4 per cent for the day.
The global cryptocurrency market cap was trading higher to the $1.02 trillion mark, gaining more than 2 per cent in the last 24 hours. However, the total trading volumes were almost flat, rising merely 3 per cent close to $57.92 billion.
Increased SEC pressure and regulation of the crypto market, such as the scrutiny of stablecoin securitization, could lead to further volatility and uncertainty in the market, said Sathvik Vishwanath, Co-Founder & CEO at Unocoin.
“The Fed’s preferred gauge of inflation, the price index of personal consumption expenditures, or PCE, comes out on February 24. The next CPI report is due on March 14. Yesterday’s CPI was 6.4 per cent,” he said.
Crypto updates
Paxos, the issuer of the $16 billion Binance USD (BUSD) stablecoin, has burned more than $700 million of BUSD tokens since Monday. That was when Paxos announced it would stop issuing the cryptocurrency amid mounting regulatory pressure, blockchain data shows.
Siemens, Germany’s third-largest publicly traded company by market cap, issued its first digital bond as it looks to reduce paperwork and reach out to potential purchasers directly.
Tech View By Giottus Crypto Platform
Currently, Bitcoin (BTC) is trading above $22k, down by 5 per cent on a weekly basis. Today, BTC had a rally of sorts in the short timeframes after the release of US inflation data. And with a ton of support below, BTC may be poised for a promising uptrend.
It has now claimed the $22,000 mark after mostly trading below it for the last one week, which should now act as support. BTC’s 50 and 200-day moving averages (at $20,656 and $19,694, respectively) should ensure that it doesn’t fall much below.
An ascending trendline that has held on since November will also act as a strong support. Bears should be cautious to make a move on BTC as of now. BTC’s recent high at $24,255 will be the strong resistance zone.
Major levels
Resistance: $24,255, $25,000
Support: $22,000, $20,656, $20,000
(Views and recommendations given in this section are the analysts’ own and do not represent those of Business Today. Please consult your financial adviser before taking any position in the asset/s mentioned.)
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