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Cryptocurrency Price Today: Bitcoin, Ethereum Down Up To 3% On Fed’s Dovish Tone; Solana, Cardano Defy Trends With 2% Gains
While Bitcoin (BTC)’s resilience in the past hour has been palpable, the cryptocurrency is still down nearly 3% from the previous session. Around 12:00 PM today, it was trading at $61,035.66. BTC’s decline has impacted other altcoins including Ethereum (ETH), Tether, DogecoinAvalanche and Shiba Inu which were down as much as 2.5%. Altcoins that were trading in the green during this period included Solana, Exchange rate riskToncoin, Cardano and Tron which gained up to 2%.
The weak performance of the cryptocurrency market could be attributed to the statements of the US Federal Reserve Chairman Jerome Powell, who said that the central bank needs more evidence of inflation to decide the timing of rate cuts. In addition, the May employment data was reported higher than expected.
Bitcoin’s decline reflects both concerns and opportunities in the cryptocurrency market, said Sathvik Vishwanath, co-founder and CEO of Unocoin, noting a strong trading volume of $20 billion over the past day, indicating significant market activity. “The news suggests that large Bitcoin holders, known as whales, are piling in, signaling confidence in a potential end-of-year rally,” he said.
Vishwanath said that BTC is currently finding support inside an ascending channel around $61,700, although it faces resistance at the 50-day EMA at $62,210, suggesting limited immediate upside. “With the RSI at 48, indicating neutral sentiment, the market is dependent on Bitcoin’s ability to sustain above $61,700 to avoid a deeper decline to the $60,700 and $60,000 support levels,” he added.
Source: CoinMarketCap
Regarding BTC price action, CoinDCX research team said in a note that the current decline has filled much of the weekend BTC CME gap, although another gap remains around $59,700-$59,800, suggesting BTC could fall further to fill it.
Solana is currently outperforming BTC and ETH due to ETF excitement, the note said, adding that the market is slightly negative due to BTC’s downside.
“Bitcoin has been consolidating around $61,000 for the past 24 hours, following some profit-taking by traders. It is struggling to clear the $63,600 resistance level. If it fails to hold its current position, Bitcoin could drop back to the $60,800 support level, with bulls looking to keep it above that level,” warned Edul Patel, CEO of Mudrex.
He pins his hopes on the approval of Ether ETFs, which he says could improve market sentiment.
Read also: Gold’s 13% surge outpaces Nifty’s H1CY24 gains. Who could maintain lead in second half?
(Disclaimer: Recommendations, advice, opinions and views provided by experts are personal. They do not represent the views of The Economic Times)
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