The cryptocurrency market was trading in the green on Wednesday, lifted by gains in Bitcoin (BTC), Ethereum (ETH), Binance (BNB), Cardano (ADA), Solana (SOL) were up among other coins. The global crypto market cap is $1.03T, a 2.12% increase over the last day, according to Coinmarketcap.com at 6.00 am IST.
Bitcoin, the largest cryptocurrency by market value, traded back above the $22,000 price level as concern about a widening crackdown by regulators eases.
BTC jumped as much as 3.2% to $22,323 during New York trading, after turning negative earlier in the session. Mostly Bitcoin has traded below that level since a string of regulatory actions were unveiled recently.
“The crypto market cap is up by 2.41% in the last 24 hours led by crypto heavyweights like Bitcoin and Ethereum. BTC is back above the $22,000 mark and ETH surged by 3.34% and exchanging hands at $1548. The crypto market is up despite the latest CPI data suggesting inflation numbers are higher than in January 2023. The crypto market will continue to respond sharply to macroeconomic factors in the coming weeks,” said Shivam Thakral, CEO of BuyUcoin.
“Most cryptocurrencies rose following the US Consumer Price Index (CPI) data for January, where inflation fell less than expected. Bitcoin rebounded from the recent lows and is currently trading above the US$22,000 level. BTC’s next resistance now lies at the US$22,260 level, while the support lies at the $22,000 level,” said Edul Patel, Co-founder and CEO at Mudrex.
On the other hand, Patel said, Ethereum also climbed back above $1,500 level, in line with Bitcoin. However, despite the small gains, the overall momentum in the market is slightly bearish, he added.
Meme coin Dogecoin gained about 1.50%, while Binance Coin rose 2% and Ethereum increased 4.7%.
Solana’s (SOL) price was up by 3.73 per cent at $21.61 today.
Cardano (ADA) was up by 7.77 per cent to $0.3851.
Polygon MATIC was up by 5.96 per cent to $1.25.
Shawn Cruz, head trading strategist at TD Ameritrade said, “It is interesting to me that you’re seeing crypto rally when you have the SEC continuing to crack down on a lot of these businesses.”
“I’m not entirely certain I would expect that to remain,” Cruz added.
Several crypto tokens were down earlier on Monday, with the native token of the Binance exchange dropping the most since a November market meltdown.
The New York State Department of Financial Services directed Paxos Trust Co to stop issuing new tokens of crypto’s third largest stablecoin, a Binance-branded coin known as BUSD that has roughly $16 billion in circulation.
Paxos stated the US Securities and Exchange Commission had notified the firm about a potential enforcement action. Kraken reached a settlement with the SEC last week.
Meanwhile, cryptocurrency-related stocks also surged, with Coinbase Global halting a seven day slide, while MicroStrategy rising about 9%.
Bitcoin spent most of 2022 trading in tandem with stocks, especially tech firms’ shares. They all got hit when the Federal Reserve began a campaign of raising rates and reducing liquidity to tame inflation.
The correlation broke off when FTX collapsed and cryptocurrencies plunged, only to return in the new year. The S&P 500 has added nearly 8% this year, while the tech-heavy Nasdaq 100 has advanced 15%. Bitcoin has risen 34% this year, after tumbling 64% in 2022.
Crypto investment firm Satori Research’s chief executive, Teong Hng said, “We have observed that crypto markets tend to do well during US hours, a sign that institutional investors may be behind the buying interests.”
With agency inputs
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