bitcoin
And other cryptocurrencies were little changed on Monday, having made it through the weekend without excessive volatility. But the recent rally in digital assets seems to be fading, and cryptocurrency traders may have to wait until Friday for the next major catalyst.
Bitcoin price is up less than 1% over the past 24 hours to $27,850, after trading between $27,500 and $28,000 for most of the weekend. The largest cryptocurrency is still shy of its recent peak near $29,000 — its highest since the cryptocurrency crash accelerated last summer — and traders still see the $30,000 level as key after the rally that lifted bitcoin from around $16,500 since its inception. general.
“We believe that the bullish momentum we have seen in the past few weeks is losing some of its magic as the price is starting to consolidate ahead of an important psychological price level of $30,000,” said Naeem Aslam, Chief Investment Officer at Zaye Capital Markets. . “We should see Bitcoin break very comfortably above this price and stay above this price tag if the rally is to continue its journey.”
A lack of liquidity in cryptocurrency markets — a trend started by the collapse of FTX in November and exacerbated by the failure of two crypto-focused banks in recent weeks — has led to choppy trading on weekends, when volume is at its lowest. While Bitcoin has seen some choppy action since Friday, it has largely stabilized around the $28,000 region, which it reached less than two weeks ago.
Cryptos has leapt forward in the past month despite mounting regulatory headwinds, as digital asset firms such as Coinbase Global (stock ticker: COIN) face threats of US crackdown. Developments on the legal front could be a catalyst in the near term, but cryptocurrencies are likely to remain more sensitive to macroeconomic forces.
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Expectations that the Federal Reserve will shift to more accommodative monetary policy, and moderate higher interest rates in its fight against inflation, has been the driving force behind the recent cryptocurrency rally. Bitcoin has moved in step with stocks as the main gauge of risk sentiment and is likely to continue to react along with
Dow Jones Industrial Average
And
Standard & Poor’s 500
For economic data and central bank news.
Cryptocurrency traders may have to wait until Friday for a major move, with limited major economic data until the end of the week. The personal consumption expenditures (PCE) index, the Fed’s preferred measure of inflation, will be released on Friday.
beyond bitcoin,
ether
– Second largest cryptocurrency – down 1% at $1,750. Minor cryptocurrencies or altcoins were also weaker, with
Cardano
And
ribbed
2% loss each. Memecoins were also in the red, with
Dogecoin
down 2% and
shiba inu
shedding 1%.
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Write to Jack Denton at [email protected]
“Infuriatingly humble alcohol fanatic. Unapologetic beer practitioner. Analyst.”