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After an eventful week for crypto markets with its market capitalization touching $1 trillion, Bitcoin (BTC) has slipped back to $21,000 as troubling news emerged this Monday. According to sources, the U.S. Securities and Exchange commission (SEC) is currently investigating a crypto exchange Coinbase on whether it listed digital assets that should have been registered as securities. On top of that, the Federal Open Market Committee (FOMC) meeting that announces the interest rate hike is due today. Other central banks around the world like the Bank of Canada and European central bank have raised interest rates more than the stipulated, putting more pressure on crypto markets.
In todayâ€™s article, we are going to brief about the price actions of major crypto assets and the short-term outlook for Bitcoin.
Bitcoin under pressure
BTC got rejected near $24,200 last week as bears continue to apply sell pressure on overhead resistance levels. The entire market was in euphoria as BTC was trading above the critical 200-week moving average (WMA) at $22,700. Eventually, BTC succumbed to the volatility, unable to close above the 200 WMA. BTC is currently trading near the $21,000 mark, down by 4% in the last 24 hours.
Despite the weakness in the market, BTCâ€™s narrative as a medium of exchange has been held intact with lightning network continuing to grow resiliently over the past few months. Lightning network is a layer-2 payment protocol that enables faster transactions using BTC. It has grown to over 4000 BTC as adoption picked up from last year. However, the public capacity is still at $98 million.
Altcoins are down
Among the top 20 crypto assets by market capitalization, Unus Sed Leo (LEO) and Tron (TRX) managed to keep the losses below 2% from the previous day. LEO is the token that empowers the iFinex, the parent company of worldâ€™s leading exchange Bitfinex. Exchange tokens like Binance Coin (BNB), FTX crypto token (FTT) have performed well in terms of holding strongly against bearish winds. BNB is down 5% today and trading at $245. FTT, currently ranked 21st in the top crypto assets list, is also down by 5% today to stand at $26.
Short-term outlook for Bitcoin
Macro environment is still shaky and high volatility is expected as earnings reports of major tech giants like Microsoft, Meta, Apple and Google are expected this week in addition to the FOMC meeting scheduled later today. Crypto market is closely correlated with the stock markets around the world as large amounts of institutional money has entered over the last year. Investors are advised to focus on long term gains since adoption is also growing steadily. According to Boston Consulting Group, crypto is expected to hit 1 billion users by 2030. So, being bullish in the long term is a healthy bet that crypto investors can take.
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Disclaimer: This article was authored by Giottus Crypto Exchange as a part of a paid partnership with The News Minute. Crypto-asset or cryptocurrency investments are subject to market risks such as volatility and have no guaranteed returns. Please do your own research before investing and seek independent legal/financial advice if you are unsure about the investments.