Today, most of the main cryptocurrenciesincluding Bitcoin, are experiencing a dip, with losses ranging from 0.03% to 4% in the last 24 hours. Despite this recent drop, Bitcoin’s value has risen 40% since the beginning of the year, rising from $16,000 to its current price of $22,690.
This recent rally has led some traders to believe that it could signal the end of a long bear market. Despite this upbeat outlook, the momentum seen in January has largely dissipated in February, with Bitcoin starting the month around $24,000.
The most popular coin started to fall with the rest of the market after briefly touching the $24,000 level on Feb. 2. It remains the leading cryptocurrency, with a market capitalization of USD 436,000 million and a 24-hour trading volume of $29.6 billion at press time.
The second most important currency, Ethereum (ETH), has also followed the same trend, with a decrease of 2.62% in the last 24 hours. ETH is currently trading at $1,631, with a market capitalization of $200 billion and a trading volume of $8.68 billion.
Other popular altcoins are not exempt from the nosedive as BNB, Ripple (XRP), Cardano (ADA) and Dogecoin (DOGE) are also down by respective percentages of 3.16%, 1.65, 2.93%. and 3.83% in the last 24 hours.
On the other hand, MATIC, the crypto powering the Polygon Layer-2 scaling blockchain network, appears to be the only top-10 crypto in the green at the moment. MATIC had an increase of 2.73% in the last day and around 8.20% in the last seven days.
WHAT’S GOING ON?
The cause of the recent drop in the price of cryptocurrencies remains uncertainHowever, some market participants believe that the recent statement by the Federal Reserve indicating a continuation of aggressive interest rate hikes may have played a role.
Jerome Powell, Chairman of the Federal Reserve, spoke in favor of raising interest rates to combat inflation at the Economic Club of Washington.
The comments seemed to support Bitcoin (BTC) as the federal bank was starting to rein in inflation, however; the market situation has taken a turn in the opposite direction.
Despite the current drop, Some Experts Predict Bitcoin (BTC) Has Exited The Bear Marketwhile others believe that a value of 25k is more likely than 20k.
I really think ~$25.000 is like a magnet for $BTC.
But then, it gets really interesting.In Bitcoin history, the slow EMA’s (grey bands) in the CM Guppy indicator have ALWAYS been the most significant resistance.
Rejection = Goodbye!
Breakthrough = Incredible FOMO pic.twitter.com/sLm12HHIid— ????????????????????????????ⓗ???? ???? (@el_crypto_prof) February 9, 2023