Like a saw blade, for the third time in four days, the bitcoin price rose above US$23,000 before tumbling back down as the market continued expectations that macroeconomic conditions would improve.
Cryptocurrencies most have held steady near this threshold as investors remain hopeful about inflation and the economy. Thus it is written Coindesk, in the news recently.
“So far this week, no events have offset the recent narrative of falling inflation, slowing economic growth and the US central bank preparing to raise interest rates at a more moderate pace than in 2022,” he said. Coindesk.
BTC was recently trading around US$22,600, down 2 percent over the past 24 hours, although cryptocurrencies the largest by market capitalization is still up more than 30 percent this year.
In an interview with CoinDesk, head of global research for FOREX.com, Matt Weller, said the recent rally stems from market dynamics, including the liquidation of positions short the big one.
Weller said he now sees a fraction of that FOMO from traders thinking they will have all this year to buy near the lows.
“Now that we’re starting to see prices going up, we’re starting to see a lot of traders giving up and jumping in to make sure that they don’t miss the big spike that we’re having right now,” he said.
Ether fared less well, falling below $1,550 for the first time in a week. Crypto the second largest by market value fell 5.7 percent from Monday, the same time.
Asset crypto another major dip later in the day to trade well in the red, with the popular meme coin DOGE and Shiba Inu (SHIB) were down more than 7 percent and 8 percent, respectively, and ADA were down 8 percent.
CoinDesk Market Index (CDI), an index that measures performance cryptowas recently down about 4 percent.
Equity indexes traded sideways on Tuesday with the tech-intensive Nasdaq and S&P 500 dropping fractions of a percentage point as investors reaped recent earnings, varying from decent (General Electric) and less expensive (3M and Microsoft).
As the price of bitcoin goes up and down, so does the news crypto experience ups and downs. Where JPMorgan analysts noted an increase in trading crypto exchange Coinbase this year even as rival volumes have fallen.
And the Genesis Global Capital unit, the lender crypto who filed for bankruptcy protection in New York last week, claiming that longtime blockchain industry veteran and Bitcoin Cash proponent Roger Ver, failed to complete a cryptocurrency options trade.
The charges against Ver by GGC International Limited were contained in a January 23 filing to the New York State Supreme Court in Manhattan. Genesis is a subsidiary of Digital Currency Group (DCG), the crypto conglomerate that also owns CoinDesk.
Meanwhile, FOREX.com analysts say that institutions, not investors are behind the spike in prices crypto This year.
“I don’t think there have been any exciting new use cases driving retail back into the market yet,” said Weller.
He added, “It seems like the only people who are still holding out on the retail side are those who have been through a lot of cycles who understand how volatile this market can be.
“Remember that these agencies move very slowly, and they have to go through the board and draft a compelling case and get approval to gradually increase their appropriations. And that decision was not made lightly,” he said.
According to him, many of those processes restart in 2020, 2021.
“They’re still ongoing and giving institutions the opportunity to buy, say, cheap bitcoin or Ether, that’s really what puts the floor under the market and can continue to support prices as we move through this year and beyond,” Weller said. [ab]