Bitcoin fell and other alt coins with it, Polkadot drops the most
On Wednesday morning Trading session Bitcoin fell, although it had maintained the resistance level at USD 23000. Various other top 10 cryptocurrencies also saw a decrease in price including Shiba Inu, Polkadot, and Cardano. On Tuesday, US equities closed at negative after the inflation concerns were brought up again. It is expected that the Federal Reserve, this time, would be tougher while deciding the interest rate hikes.
The cryptocurrency price charts show that massive losses happened recently. Bitcoin, one of the most famous crypto coins, experienced a drop of 2.15 per cent in its price on both national and international exchanges. While writing, the price of Bitcoin stood at USD 23000.
In the past day, the value of cryptocurrency got reduced by USD 50. Meanwhile, in 2023, the value of Bitcoin has seen a surge of 40 per cent. The immediate resistance level for bitcoin is USD 24200 and the support level is USD 23800.
Following the bitcoin trajectory, Ethere saw a decline in price by 1.35 per cent. The value of Ethereum is revolving around 1600 USD – 1650 USD. In the past day, the value of the Ethereum token has dropped by nearly 20 USD.
Shiba Inu, the meme token saw a decline of 4 per cent and fell out from the list of the top 10 cryptocurrencies based on market capitalization. Moreover, it also faced a loss of 8 per cent weekly after Voyager Digital sold off its Shiba Inue Holdings. Additionally, there was a 182 Billion Shiba Inu token transfer to the cryptocurrency exchanges on Monday that has caused a further drop in the price.
Meanwhile, Litecoin has replaced Shiba Inu in the list of top 10 cryptocurrencies, as it maintained a gain of 0.20 per cent. Also, it has announced its partnership with Metalpha Technology Holding Ltd with a goal to make Litecoin mining more secure and energy efficient. The total cryptocurrency market fell by nearly 1.4 per cent in the past 24 hours and the total trading value has reduced by 10 per cent to USD 42 Billion.
Cryptocurrencies Performance in February
The top 10 cryptocurrencies were quite stable in February. Various traders and investors thought it was due to inflation and the possibility of an increase in interest rates. In February, the price of Bitcoin topped USD 25000 with a monthly gain of 1.3 per cent. Ethereum rose by 3.7 per cent and closed out at USD 1630 in February Month.
Among the top 10 largest cryptocurrencies based on market capitalization, Dogecoin was the worst performer which saw a decline of 7.4 per cent. Whereas Polygon was the best performer which saw a 6.6 per cent gain in price.
Following February’s profits, Bitcoin prices are now up by 41 per cent and Ethereum prices by 36 per cent. In 2023, the crypto prices have been quite reliant, after both Ethereum and Bitcoin showed the worst annual performance since the 2018 bear run.
Rising Interest rates and big crypto companies going bankrupt have made cryptocurrency prices quite tumbling.
Coinbase has recently launched the Ethereum L2 network built on top of the Ethereum chain. Like other L2 Networks, BAse would provide a user-friendly and secure way for developers to build the apps on EVM compatible chain.
Senior Digital assets research analyst at Global X Erik Anderson has told that L2 solutions like Base are quite a critical component for the long-term success of the Ethereum scalability. The Launch of Coinbase’s BAse blockchain is the outcome of its commitment to making Ethereum more scalable and following the principle of security and Decentralization.
Meanwhile, International Monetary Fund (IMF) has also released a paper to showcase the 9 recommendations for countries to approach cryptocurrencies. As per IMF Paper, the countries should implement clear crypto tax laws and rules and have safety measures against large capital flows, and also not consider crypto as a legal tender.
March is considered to be an unpromising month as the different crypto tokens have fallen and saw an average decline of nearly 15 per cent, expressed Alex Kutslkevich, an Analyst Broker – at FX pro. While Bitcoin’s surge was happening, the S&P 500 and Dow Jones Industrial Average outperformed with the correlation between stock marketing fasting and cryptos.
Investors should consider equities while trading crypto tokens. There are also other factors like institutional adoption and regulatory scrutiny to analyze the risk and know the sentiments.
Investors are currently concerned about the rise in inflation and interest rate hike. Higher rates would dampen the damnd for risker bets in the crypto and stocks market. The recent signals have shown that inflation could be persistent and interest rates would stay higher most of the time. Despite all this, crypto traders are still placing bets to make gains. Analysts at Bitfinex ( Cryptocurrency exchange) have told that sentiment is quite bullish again after it was neutral the previous week.
