Major tokens stabilised after suffering losses of up to 15%, and Bitcoin recovered swiftly after briefly dipping below $61,000. Bitcoin is still falling in value, and analysts have reduced the likelihood of an ether exchange traded fund listing. Traders are encouraged to monitor the risk appetite in financial markets, which is impacted by central bank meetings.
After temporarily dipping below the $61,000 mark in early Asian trading hours, Bitcoin {{BTC}} quickly recovered and reclaimed $63,000 in Wednesday morning European hours, the lowest point of the day.
Major tokens fell for a second day, while data suggests that bets on rising prices saw liquidations of roughly $600 million. As of this writing, there was no discernible trend in futures positions; half of all futures holdings were longs and half were shorts.
The data from CoinGecko shows that major coins stabilized, with some even seeing a 15% dip. There was minimal movement over the last 24 hours, with losses of just 0.34%, in the widely-followed CoinDesk 20, which is an index of different main tokens excluding stablecoins
The price of Ether (ETH) dropped below $3,100 for a short period on Tuesday night as experts reduced the likelihood of the widely anticipated May listing of ETH in an exchange-traded fund (ETF). Solana {{SOL}}, Avalanche {{AVAX}}, and Cardano {{ADA}} coins all lost 8% in a day, and that's just on the layer-1, or base, blockchains alone. Even though it dropped 5% overall, meme currencies and trade tokens did better.
The whole market value has dropped by about 15% during the last week. At the start of Wednesday's trading in Europe, the total cap had risen to $2.35 trillion from $2.28 trillion in the morning.
At the same time, there are traders who believe that investors should wait for positive macroeconomic developments before placing bets on bitcoin because the asset's price behavior indicates a slump. Afterwards today, the U.S. Federal Reserve's Open Market Committee (FOMC) will meet to deliberate about the economy and determine interest rates.
"Bitcoin remains in a downtrend, with a series of lower lows and lower highs," stated Alex Kuptsikevich, a senior market analyst at FxPro, in an email sent to CoinDesk.. At the following support levels, we will closely monitor bitcoin's dynamics: $60.3K, which represents the correction to 61.8% of the last surge, the $56K area, which is the 50-day average and 50% level, and $51.5K, which was the consolidation area in February.
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