Crypto market remains volatile, Bitcoin falls below $42,000- Republic World

Crypto Wallet | Image: Unsplash

Crypto Market Overview: Bitcoin lost more than 4.72 percent in the last 24 hours, while Ethereum also lost nearly 5 percent over the weekend. The speculations of another rate hike by the US Federal Reserve are driving the volatility in the crypto market. The worst hit in this market decline is taken by Toncoin which suffered 8.30 percent in the last 24 hours.

Despite high volatility in the market, Crypto Fear and Greed Index remained stable over the weekend, maintaining 74 points on the scale.

While talking about the crypto market movement over the weekend, CoinDCX Research Team said, “Over the weekend, the crypto market maintained a quiet atmosphere, with some bullish moves in altcoins. However, as the new week began, Monday ‘ saw a sudden downturn – BTC fell more than 7 percent, briefly dipped below $40,500 and touched the 20 EMA Daily. It quickly recovered to $42,500. At the same time, ETH experienced an 8 percent drop, but a partial recovery above $2250 The sudden market move appears to be more of a correction or profit taking, considering BTC’s eight consecutive weekly candle closes in the green.

Technically, key support levels for BTC are positioned at $40,600 and $37,800, while resistance levels are observed at $44,700 and within the $47,000-$48,000 range. For ETH, support levels are identified at $2,130 and $2,020, with resistance levels at $2,450 and $2,950,” CoinDCX added.

Parth Chaturvedi, Investments Lead, CoinSwitch Ventures, also shared his crypto market insights with Republic Business. Chaturvedi said, “The week started with corrections within the crypto market. According to the market data, the top 10 cryptos by market cap are currently trading in the red. However, most of the losses occurred around 6 AM. This could be the result of liquidations of more than $335 million over the past 12 hours, with $300 million in long positions, according to data from Coinglass.BTC is still trading above $41,000, while ETH is trading above the $2,200 mark.

“In terms of blockchain network-specific action, Chainlink’s extensive crypto-staking program raised over $632 million in just six hours of the early access period last Friday; it also led to a boom for LINK. At the same time, Stabelcoin issuer Tether froze 41 wallets as a precautionary measure on Saturday. These wallets were held by individuals listed on the Office of Foreign Assets Control (OFAC) Specially Designated Nationals (SDN) list,” Chaturvedi added.

Rajagopal Menon, Vice President, WazirX underlined the importance of the US Fed’s rate hike decision: “This week carries significant weight for the crypto market as the Federal Reserve is poised to make a crucial decision on rate hikes. Contrary to the divergent opinions among analysts in recent weeks, the prevailing consensus is leaning toward the Fed opting for a hiatus on interest rate hikes, a potential boon for the cryptocurrency sphere.

“Additionally, the upcoming annual consumer price index (CPI) data holds the key to revealing inflation rates and influencing potential rate adjustments. In case of the former scenario, the crypto market will benefit,” Menon added.

Sudeep Saxena, Co-Founder, Coin Gabbar shared his understanding about the reasons that drive volatility in the market. Saxena said: “In the early Asian session, Bitcoin faced a 7 percent drop, briefly touching the $40,400 level, leading to the liquidation of nearly $200 million in positions. With the upcoming US Consumer Price Index (CPI) and the Federal Reserve’s interest rate decision this week, are expectations for continued increased volatility.”

Mudrex CEO Edul Patel said: “Bitcoin is currently priced at $42,000, facing increased take-profit and sell orders, prompting market-wide liquidations after reaching a new annual high of $44,700 last week. Market dynamics are characterized by a battle between bulls and bears. A move above the $44,700 resistance could signal a resumption of the uptrend, while a drop below could find support at the $40,600 level. Meanwhile, Ethereum followed suit and over the past 24 hour decreased by about 4 percent due to profit taking by whales.”