Thursday, July 25, 2024

Market Watch Jan 07: Bitcoin Slips Further, Traders Turn To Stablecoins

Bitcoin has taken a plunge toward $40,000 sending the alarm of an impending market crash. The fall is attributed to the Federal Reserve’s minutes about raising interest rates. This is weighing heavily on the cryptocurrency market, pushing it down.

BTC, as per CoinMarketCap, is down nearly 3% in the last 24-hours and stands at $41,780 mark. Ethereum is also down by nearly 7% and is much closer to $3,000. Besides the two most popular cryptocurrencies taking a hit, the entire crypto-economy is down by 4.5%. It is estimated to have a value of $2.25 trillion.

Mike Novogratz, CEO at Galaxy Digital Holdings, believe this is due to low volume. He said there has been a tremendous amount of institutional demand on the sidelines. The crypto enthusiast told CNBC in an interview that the market will be volatile over the next few weeks. Novogratz says bitcoin could be as low as $38,000.

Rekt Capital highlighted that bitcoin has deviated below the blue 50 EMA. It is attempting to set a new higher low (HL).

Rekt Capital noted that BTC, in May 2021, had formed a higher low (orange) before straying below the 50 EMA. The world’s most popular cryptocurrency initially held the HL. The crypto enthusiast sees bitcoin falling into the $40,000 range.

Scott Melker, an independent market analyst, focused on the fibonacci retracement levels, also known as the golden pocket. He said it is considered as the most operational place. Melker believes bitcoin’s golden pocket to be $28,600 to $69,000 range.

Meanwhile, with the mainstream crypto market witnessing a fall, traders are looking at stablecoins or alternative cryptocurrencies for gains. On Thursday, ATOM, ONE, NEAR and FTM emerged as the some of the biggest winners. The market witnessed the price of Harmony’s ONE token up by nearly 11%.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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