Altcoins nurse double-digit losses as Bitcoin bulls fight to retake $49K

Another wave of selling pressure hit the cryptocurrency market on Feb. 23 as Bitcoin struggles to reclaim the $49,000 niveau.

Data from Cointelegraph Markets and TradingView shows that Bitcoin fell under intense pressure in the early trading hours on Tuesday and this pushed the price of BTC as low as $44,927 before buyers arrived to stop the descent.

The majority of altcoins and DeFi tokens are now even deeper into their double-digit losses and Bitcoin (BTC) price has dropped by more than $10,000 autrefois 48 heures.

Graphique BTC / USDT sur 4 heures. La source: TradingView

Au moment de la rédaction, BTC is trading at a price of $48,600, which reflects a 11% decrease for the day but according to Cointelegraph analyst Marcel Pechman, pro traders have looked to buy the dip and opened new leveraged long positions.

Today’s market downturn has overshadowed several positive developments for the cryptocurrency ecosystem, including the news that Bitfinex and Tether have settled their case with the Office of the New York Attorney General and agreed to pay $18.5 million for damages to the state of New York. Both parties also agreed to submit to periodic reporting of their reserves.

Interest in the first Bitcoin ETF in North America has also continued to explode as the Purpose Bitcoin exchange-traded fund has grown to $564 million in assets under management just five days after the fund was launched. Filings also show that the fund added 2,251 BTC being added to the fund on Feb.23.

Pullbacks are a sign of a healthy market

Despite the market-wide carnage, many crypto traders and professional investors view the current pullback as a necessary break that allows overbought assets to retest key underlying support levels.

As pointed out by Twitter user ‘Bitcoin Archive’, corrections like these are par for the course and were commonplace during the 2017 bull market which had “9 dips between 20-40%”. Despite these reoccurring deep corrections the market still increased by “20 times from its previous all-time” high over the course of 2017.

Significant BTC price pullbacks during the 2017 course de taureaux. La source: Twitter

Summing up how that relates today and where BTC is headed, Bitcoin Archive stated:

«Nous sommes maintenant assis sur 2,35x le cycle précédent ATH OF 20k. This rally is just getting started”

Traditional markets rebound

Traditional markets also faced early selling pressure on Tuesday morning but they were able to climb back into the green shortly after Federal Reserve Chair Jerome Powell reaffirmed that the Fed will maintain the current accommodative policies, including keeping benchmark rates near zero and asset purchases at the current pace of $120 billion per month.

By the closing bell the S&P 500 and Dow managed were up 0.13% et 0.50% respectivement, while the NASDAQ closed down 0.50%.

Altcoins take a beating with recent high flyers hit the hardest

Bitcoin $13,000 drop over the past 48-hours has taken a heavy toll on the altcoin market and many of the recent high-flying DeFi tokens took the brunt of the damage.

Performance quotidienne du marché de la crypto-monnaie. La source: Pièce360 Coin (CRO) saw a 33% pullback and Binance Smart Chain’s Venus (XVS) DeFi protocol saw its price drop 24% to trade at $58.63.

A select few projects were able to buck the trend and post positive gains on Feb. 23, as new announcements about blockchain interoperability-related projects provided a well-needed lift to tokens focused on layer-2 and cross-chain transactions.

Solana (SOL) Rose 11.23% to trade at $14.94 after the release of its new automated market maker protocol Raydium. Fantôme (FTM) price also rallied by 24% after the team announced a collaboration with and the rollout of a cross-chain bridge to the Ethereum (ETH) réseau.

Graphique journalier BTC / USD. La source: Pièce360

La capitalisation boursière globale de la crypto-monnaie est maintenant de $1.44 mille milliards et le taux de domination de Bitcoin est 62%.

Bloquons les annonces! (Pourquoi?)

La source: Cointelegraph