Crypto Price Today: Bitcoin below $24,000; Shiba Inu, Avalanche, Solana drop 5% each
After a strong rise on the previous day, the crypto market gave up some gains on Friday after inflation numbers in the world’s largest economy spooked the traders. The US Federal Reserve’s monetary policy and crypto industry’s own woes are likely to guide the markets in the near term.
Bitcoin briefly reached the $25,000 level on Thursday, marking its highest point in the last six months before dropping below $24,000. This decline comes after the release of the unexpected increase in the US Producer Price Index (PPI) data, suggesting that the US Feb could not succeed in controlling the price increases, said Edul Patel, Co-founder and CEO at Mudrex.
“Despite this setback, BTC has experienced a 73 per cent increase from its lowest point in the last month. Ethereum has followed a similar pattern, rising above $1,700 before falling back to $1,600. Investors are becoming increasingly concerned about inflation and monetary policies following the release of the PPI data,” he said.
Bitcoin breached below $24,000-mark as the largest crypto token dropped more than 3 per cent in the last 24 hours. Its largest peer, Ethereum, managed to stay above $1,650, even as the token declined 2 per cent. Pain among several altcoins was severe.
Barring the US dollar pegged stablecoins and Polygon, all other top crypto tokens were trading in red. Solana, Tron, Avalanche and Shiba Inu tanked 5 per cent each, whereas Dogecoin and BNB surged 4 per cent each. Polygoin, the sole gainer altcoin, was up more than 4 per cent.
The global cryptocurrency market cap was trading sharply lower to $1.09 trillion mark, dropping as much as 3 per cent in the last 24 hours. However, the total trading volumes jumped more than 13 per cent close to $81.11 billion.
Crypto updates
The uncertain future for embattled stablecoin Binance USD is stirring discord in the dollar-pegged crypto markets that one analyst says could accelerate into a dramatic reshuffling of the sector’s big winners and losers.
Analysis by Binance Research has found that a notable minority of ether holders who staked their ETH in Ethereum’s Beacon Chain over the past three years are making money, while the rest are underwater.
The crypto market is struggling with an ‘Alameda gap,’ where several projects are postponing their token launch plans because of a lack of liquidity despite surging bitcoin and ether prices.
Note: Price change in last 24 hours
Tech View By Giottus Crypto Platform
Currently, Ethereum (ETH) is trading around the $1,660 mark, up by 7 per cent in the past week. ETH claimed a macro golden pocket at $1,702 yesterday for a brief period and was trading at a high that was last seen five months ago.
While it struggled to maintain its price overnight, ETH may still be in a good position to test the next important resistance at $2,000 as long as its current levels are maintained. Trading decisively below the $1,660 level for extended periods may however send the message that this was a failed impulsive move that was rejected by the market.
It is ETH’s overbought RSI (close to 80), and its 50 and 200-day moving averages (both close to $1,450), that may have forced an immediate correction. However, consolidation at current levels can certainly add fuel to the fire for a follow through move.
Major levels
Resistance: $1,662, $1,700, $2,000, $2,027
Support: $1,600, $1,550
(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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