Bitcoin (BTC) has managed to resurface above $23,000 after falling below it earlier this week, much to the chagrin of long traders who saw their positions wiped out.
However, the benchmark crypto asset remains highly volatile, with bulls and bears battling for control of the 23,000 price point.
Binance’s depth chart for the BTC/USDT pair doesn’t show a clear advantage in any way, so it should make for a fun trading session, especially with the Federal Reserve’s rate decision due this afternoon.
Any hawkish sentiment voiced at the Fed conference could weigh on risk appetite and push BTC lower, although the reverse is also true – if a pause in further rate hikes is announced, investors could potentially buoy risky assets like Bitcoin.
In any case, BTC/USDT is showing clear signs of normalization after January’s stunning rally.
Bitcoin (BTC) slows after strong gains in January – Source: currency.com
Ethereum (ETH) has also started trading sideways on a post-January dip and is currently changing hands at $1,570 for the ETH/USDT pair.
Comparing performance against Bitcoin, ETH has significantly underperformed throughout January, although the ETH/BTC pair has seen fewer losses over the past few days.
In the altcoin space
The CoinDesk Market Index (CMI), which tracks non-bitcoin crypto assets, remained at 1,077 overnight, suggesting little price action in the altcoin space.
Trending tokens include DYDX, dYdX’s native token, which is up 23% overnight and nearly 70% week-on-week following the release of its first annual report.
Mid-tier blockchain networks Threshold (T) and Fantom were also top movers overnight.
Among large-cap blockchains, Polygon (MATIC) continues to be the strongest weekly performer, followed by Avalanche (AVAX).
The global cryptocurrency market cap currently stands at $1.04 trillion, while the total value locked across all decentralized finance (DeFi) protocols has remained steady at $47.5 billion.
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