The digital asset markets are experiencing some turmoil on Tuesday as total crypto market cap has lost 11% in value in the past 24 hours. Bitcoin fell to a low of $ 44,846 during morning trading sessions (EST) and lost more than 18% on the last day.
Bitcoin price drops over 18% and is quickly regaining some of the losses
Proponents of cryptocurrencies are watching the markets closely for the price of Bitcoin (BTC) started sliding early Sunday morning after idling in the $ 55,000 range. Twelve hours earlier, the crypto asset hit an all-time high of $ 58,354 per unit. Since then BTC hit a low of $ 44,846 on Tuesday and has been very volatile for the past 24 hours.
Today, BTCThe market valuation is below the $ 1 trillion mark, which was $ 909 billion at the time of publication. There is a whopping $ 47 billion worldwide BTC trades between the total of $ 177 billion in swaps across the crypto economy.
The second largest market capitalization still holds Ethereum (ETH), but the ether is down 8% at the time of writing. For now, ETH trades for $ 1,576 per coin and has a market valuation of around $ 180 billion.
Tether has regained third place in the top ten of the rankings, while Binance Coin (BNB) now holds fourth place. BNB is down 14% and trades for $ 227 per token. The fifth position is held by Polkadot (DOT), which has fallen more than 5% and is trading for $ 34 per unit.
“Soft” inflation, Fed could buy government bonds that fuel Bitcoin
While crypto assets have jumped in the past 24 hours, stocks have also fallen as Federal Reserve Chairman Jerome Powell testified before Congress. Powell did not appear to be affected by the dire economic outlook in the US and rising bond yields.
The Fed chairman noted that inflation was “weak” and that the central bank would be there with continued fiscal policy. The cryptocurrency analyst Ben Lilly in a recently stated blog entry that this is bullish. “If the Fed increases its buying of government bonds, it can be bullish for Bitcoin,” Lilly said.
“Sell-off will attract more investors in the long term”
Simon Peters, crypto asset analyst at multi-asset investment platform Etoro, also says the sell-off is part of a global decline. Today’s correction in crypto assets is part of a larger sell-off in markets around the world, “Peters wrote in a notice to investors.
“To be driven by profit-taking,” continued Peters. “Investors are closing positions, which has generated significant profits for many of them. However, as positions close and prices fall, data from Etoro shows that for the first time ever, more new investors are kicking in and buying bitcoin. In the last seven days (until Monday), 26% more positions were opened than closed. “
Peters added:
The sell-off will attract more investors in the long run. In the short term, however, we will see some volatility as we are today. We still see great potential for Bitcoin and colleagues as the year progresses.
In the meantime, after falling below the $ 45,000 handle, BTC has managed to jump back over USD 48,000 for the time being. So far, people have been excited to see where the crypto asset will go next after a crazy run into the over $ 58,000 territory last week.
What do you think of this week’s crypto selloff? Let us know what you think on this matter in the comments section below.
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