Today, most of the leading cryptocurrencies, including Bitcoin, are experiencing a downturn, with losses ranging from 0.03% to 4% in the last 24 hours. Despite this recent dip, Bitcoin’s value has still increased by 40% since the start of the year, rising from $16,000 to its current price of $22,690.
This recent surge has led some traders to believe that it could signal the end of a prolonged bear market. Despite this optimistic outlook, the momentum seen in January has largely dissipated in February, with Bitcoin starting the month at around $24,000.
The most popular coin started declining with the rest of the market after briefly touching the $24,000 level on the 2nd of February. It remains the leading cryptocurrency, with a market cap of $436 billion and a 24-hour trading volume of $29.6 billion at press time.
The second largest coin, Ethereum (ETH), also followed suit, decreasing by 2.62% in the last 24 hours. ETH currently trades at $1631, with a market cap of $200 billion and a trading volume of $8.68 billion.
Other popular altcoins are not exempted from the dive, as BNB, Ripple (XRP), Cardano (ADA), and Dogecoin (DOGE) have also declined by respective percentages of 3.16%, 1.65, 2.93%, and 3.83% in the past 24 hours.
On the other hand, MATIC, the crypto that powers the Polygon Layer-2 scaling blockchain network, seems to be the only top-10 crypto in green at the moment. MATIC had an increase of 2.73% in the past day and about 8.20% in the last seven days.
What’s going on?
The cause of the recent decline in the price of cryptocurrencies remains uncertain, however, some market participants believe that the Federal Reserve’s recent statement indicating a continuation of aggressive interest rate hikes may have played a significant role.
Jerome Powell, Federal Reserve Chairman, spoke in favor of accelerated interest rates to combat inflation at the Economic Club of Washington.
The comments appeared to support Bitcoin (BTC) as the federal bank was starting to control inflation, however; the market situation has taken a turn in the opposite direction.
Despite the current dip, some experts are predicting that Bitcoin (BTC) has exited the bear market, while others believe a 25k value is more probable 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
— 𝕄𝕠𝕦𝕤𝕥𝕒𝕔ⓗ𝕖 🧲 (@el_crypto_prof) February 9, 2023