Bitcoin and Crypto Tokens Dip as Recovery Fizzles Out
On Thursday, Bitcoin and other top crypto tokens experienced a downturn as the brief recovery from the previous day lost momentum. Despite Bitcoin remaining range-bound, altcoins faced more severe pain. This downturn came as crypto traders anxiously awaited the uncertain decision of the US Securities and Exchange Commission (SEC) over the approval of spot bitcoin ETF applications.
Bitcoin Back in the Red
Bitcoin saw a drop of as much as 2 percent on Thursday, returning to the red after a short-lived recovery. However, it managed to hold the 29,000-mark. Ethereum, on the other hand, was down by 1 percent and slipped below the $1,850-level. The entire altcoin market was experiencing significant losses in the early trade.
The Ups and Downs of Bitcoin
The drop in Bitcoin came after it surged to $30,000 the day before, following positive developments such as Fitch’s downgrade of US Treasurys and Microstrategy’s plan to purchase more bitcoin. However, an article suggesting that Binance could face US fraud charges caused a swift drop in BTC. According to Edul Patel, the CEO & Co-founder at Mudrex, Bitcoin is currently trading above the $29,100 level. Meanwhile, there is also anticipation among institutional investors for the US SEC’s decision on the approval of a Bitcoin Spot ETF.
Dire Straits for Altcoins
In addition to Bitcoin, all top crypto tokens, with the exception of the US dollar pegged USD Coin, were trading sharply lower on Thursday. Litecoin saw a drop of about 6 percent, while Bitcoin Cash was down 5 percent. Dogecoin dropped more than 4 percent, and XRP, Cardano, Polkadot and BNB each shed 4 percent for the day.
The Global Cryptocurrency Market
The global cryptocurrency market cap experienced a significant drop, falling to the $1.17 trillion-mark, with a 2 percent jump in the last 24 hours. However, the total trading volumes dropped about 14 percent to $34.47 billion.
Tech View by WazirX Trade Desk
WazirX Trade Desk offered insights into the Metal DAO (MTL) utility token, responsible for governing the stablecoin known as Metal Dollar (XMD). The MTL token price had surged by over 10 percent in the last two days, and WazirX Trade Desk noted that the MTL/USDT trend was approaching the upper trendline of the triangle pattern with a build-up of buying volume. The daily RSI crossed 60, and the next resistance was expected at $1.54 with immediate support at $1.38 levels. The views and recommendations were the analysts’ own and do not represent those of Business Today. Readers were advised to consult their financial adviser before taking any position in the mentioned assets.
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