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Cryptocurrency price today: Cryptocurrency price today: Bitcoin, Solana, Cardano, others drop up to 7%. Here’s why
Major cryptocurrency tokens traded in the red on Monday, as negative ETF flows weighed on the asset. Bitcoin (BTC) dropped by over 3% and was trading at $62,322.09 around 12:20 pm Indian time. Other major cryptocurrencies such as Ethereum (4.04%), XRP (2.97%), Dogecoin (XRP (2.97%), Avalanche (5.19), Tron (1.12%), Cardano (3.68%), Solana (7.28%), BNB (3.79%), Toncoin (4.89%), and Polygon (4.41%). Since the peak of $73,000, Bitcoin prices have fallen by almost 17%.
The cryptocurrency market continues to decline and remains choppy with BTC declining due to negative ETF flows and poor macroeconomic data in the previous weeks, a note from CoinDCX Research Team said. BTC has fallen below the key $64k level, with key support levels at $60,700 and $56,700 and resistance at $67,100 and $71,650, it added.
As for Ethereum (ETH), it is trading sideways and needs to break out of the range minimum or maximum for a clearer direction. The significant support levels for ETH are $3435 and $3350, while the resistance levels are $3650 and $3950, the CoinDCX note further stated.
Contrary to current trends, the BTC price surge has come on the back of strong inflows into Bitcoin ETFs. Commenting on the recent trends, Rajagopal Menon, Vice President, WazirX, said that there have been significant inflows into Bitcoin exchange-traded funds (ETFs) in recent weeks. Last week alone, around $2 billion was invested, adding a total of around $4 billion in the last two and a half to three weeks. This inflow signals a very healthy interest in Bitcoin ETFs, he said.
However, he cautions investors against conflicting metrics in the face of this apparent surge in investment. “While open interest in futures contracts has increased, other indicators such as funding rates have not shown the same aggressive trend. This discrepancy suggests a complex interplay of market forces, driven primarily by sophisticated trading strategies employed by hedge funds,” Menon said. (Disclaimer: The recommendations, advice, views and opinions provided by experts are personal. They do not represent the views of The Economic Times)
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