Bitcoin and Top Cryptocurrencies Drop as Recovery Fizzles Out
After a brief recovery on Wednesday, Bitcoin and other major cryptocurrencies were trading lower on Thursday. This news comes as the recovery of the previous day fizzled out shortly, leaving crypto traders uncertain about the market’s direction.
Bitcoin Back in the Red
Bitcoin experienced a drop of as much as 2 percent on Thursday, returning to the red after a short-lived recovery. Despite this, the largest crypto token managed to hold the $29,000-mark. Meanwhile, Ethereum, Bitcoin’s largest peer, was also trading lower, slipping below the $1,850-levels. Altcoins were particularly affected, bleeding in the early trade.
Factors Behind Bitcoin’s Surge and Subsequent Drop
Bitcoin had surged to $30,000 the day before after positive developments from a Fitch downgrade of US Treasurys and Microstrategy’s plan to purchase more bitcoin. However, as soon as a news website reported that Binance could face US fraud charges, BTC started to drop, as noted by Edul Patel, CEO & Co-founder at Mudrex. “Currently, it is trading above the $29,100 level,” he said.
Concerns Over US SEC Decision
Institutional investors are anxiously awaiting the US Securities and Exchange Commission’s decision on the approval of a Bitcoin Spot ETF. The uncertainty surrounding this decision adds to the volatility in the cryptocurrency market.
Altcoins Suffering More Than Bitcoin
While Bitcoin remained relatively range-bound, altcoins were experiencing more intense pain. Ethereum, the second largest crypto, was trading below the $1,850 level. Despite the excitement surrounding Litecoin’s halving event, the coin’s value plummeted by more than 5 percent in the last 24 hours.
Cryptocurrency Market Cap Lower
Barring the US dollar pegged USD Coin, all top crypto tokens were trading sharply lower on Thursday. Litecoin plunged about 6 percent, while Bitcoin Cash was down 5 percent. Dogecoin dropped more than 4 percent, while XRP, Cardano, Polkadot, and BNB shed 4 percent each for the day.
Global Cryptocurrency Market Cap Lower
The global cryptocurrency market cap was trading significantly lower, falling to the $1.17 trillion-mark as it jumped as much as 2 percent in the last 24 hours. However, the total trading volumes dropped about 14 percent to $34.47 billion.
Tech View by WazirX Trade Desk
The Metal DAO (MTL), a utility token governing the stablecoin known as Metal Dollar (XMD), has experienced a surge in price over the last two days. The token’s price has risen by over 10% amidst a build-up of buying volume and the daily RSI crossing 60. Analysts expect the next resistance at $1.54 and an immediate support at $1.38 levels.
Please note that the views and recommendations given in this section are the analysts’ own and do not represent those of Business Today. It is advisable to consult with a financial adviser before taking any position in the assets mentioned.
I have been a full-time professional writer for over 10 years, and have written for some of the biggest publications in the world. My work revolves around cryptocurrencies and blockchain technology, and I am widely considered to be one of the leading experts in these fields.I have written two books on the subject matter, and my articles have been featured in major news outlets such as The Wall Street Journal, Forbes, and Huffington Post. In addition to writing, I also give talks and seminars on cryptocurrency investing, and am a regular commentator on CNBC, Bloomberg, and other financial news networks.
