Bitcoin, Ethereum, Dogecoin shrug off inflation data shakes
Major coins were trading in the green on Tuesday night, as the cryptocurrency market capitalization rose 2.43% in the past 24 hours to $1.03 trillion.
| Cryptocurrency | Gains (+/-) | Price |
|---|---|---|
| Bitcoin | +2.04% | $22,166 |
| Ethereum | +3.49% | $1550 |
| Dogecoin | +1.84% | $0.083 |
What happened: The largest cryptocurrency by market capitalization, Bitcoin BTC/USDwas traded over $22,000. Ethereum ETH/USD has changed hands over $1500, up 3.49% in the last 24 hours. Dogecoin DOGE/USD was up 1.84% in the last 24 hours, trading at $0.083.
US stock markets were mixed on Tuesday, with the S&P 500 index up 0.1%, the tech-heavy Nasdaq Composite up 0.6% and the Dow Jones Industrial Average down 0.2%.
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Tuesday’s consumer price inflation report showed that January’s rate of inflation slowed at a much lower rate than expected, causing some unease in the market. Despite this, Bitcoin continued its upward trajectory.
Paxos burned BUSD 684 million for dollar redemptions, according to data from the chain. As a former issuer of BUSD, Paxos made the decision to stop distribution after the Securities and Exchange Commission issued a Wells notice.
Analyst notes: “Just when most of the traditional macro crypto drivers are turning bearish, Bitcoin is trying to show some resilience. Bitcoin posts modest gain as January inflation report suggests Fed may keep interest rates higher for longer. The market may be pricing in a little more Fed tightening, but that doesn’t weigh much on crypto today. Regulation and contagion risks have pressured Bitcoin this month, so downside movement was potentially exhausted,” said Edward Moya, senior market analyst at OANDA.
“Bitcoin has massive support at the $20,000 level, which means something big will probably have to break in the crypto transition for selling momentum to resume. It seems everyone is focused on what the SEC will say about stakes and this wait-and-see -se period could support sideways price action for crypto.”
Cryptanalyst Michael van de Poppe is optimistic that the markets will bounce upwards. He believes it is only a matter of time before we hit targets with high numbers again.
Pseudonymous analyst Caleo said that every single time Bitcoin has broken out of major long-term bearish resistance against the Nasdaq, it has resulted in a strong rally. Given this track record, it is highly likely that this time will be no different
Analyst Jason Pizzino said that Bitcoin is still in a bullish market, but warned that Bitcoin could experience short-term falls. He outlines three key levels of support at $20,700, $19,800 and $18,600 that the market should aim not to fall below. If Bitcoin falls further than $18,000, he said the structure of the bull market could be radically changed.
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