Another wave of selling pressure hit the cryptocurrency market on February 23 as Bitcoin struggles to recover to the $ 49,000 level.
Data from TBEN Markets and TradingView show Bitcoin fell under intense pressure on Tuesday in the early hours of trading, which pushed the price of BTC to $ 44,927 before buyers arrived to stop the descent.
The majority of altcoins and DeFi tokens are now even deeper into their double-digit losses and the price of Bitcoin (BTC) has fallen by more than $ 10,000 in the past 48 hours.
At the time of writing, BTC is trading at a price of $ 48,600, reflecting an 11% drop for the day, but according to TBEN analyst Marcel Pechman, professional traders have been looking to buy the trough. and opened new leveraged long positions.
Today’s market downturn has overshadowed several positive developments for the cryptocurrency ecosystem, including the announcement that Bitfinex and Tether have settled their case with the New York Attorney General’s office and agreed to pay $ 18.5 million in damages to New York State. Both parties have also agreed to submit to a periodic report of their reservations.
Interest in North America’s first Bitcoin ETF also continued to explode as exchange-traded fund Purpose Bitcoin rose to $ 564 million in assets under management just five days after the fund’s launch. Deposits also show that the fund added 2,251 BTC to the fund on February 23.
Setbacks are a sign of a healthy market
Despite the market-wide carnage, many crypto traders and professional investors view the current pullback as a necessary break that allows overbought assets to retest key underlying support levels.
As the Twitter user ‘Bitcoin Archive‘Corrections like these are normal for price and were commonplace during the 2017 bull market which had “9 drops between 20% and 40%”. Despite these deep and recurring corrections, the market still increased by “20 times its historical record” during 2017.
Summarizing how it relates today and where BTC is heading, Bitcoin Archive said:
“We are now sitting on 2.35x the previous ATH OF 20k cycle. This rally has only just begun ”
Rebound in traditional markets
Traditional markets also faced early selling pressure on Tuesday morning, but were able to move back into the green shortly after Federal Reserve Chairman Jerome Powell reaffirmed that the Fed would maintain the current accommodative policies, in particular by keeping benchmark rates close to zero and asset purchases at the current level. pace of $ 120 billion per month.
At the closing bell, the S&P 500 and the Dow managed by Dow were up 0.13% and 0.50%, respectively, while the NASDAQ closed down 0.50%.
Altcoins take a beating with recent major flyers hit the hardest
Bitcoin’s $ 13,000 drop in the past 48 hours has taken its toll on the altcoin market and many of the recent high-flying DeFi tokens have taken the brunt of the damage.
Crypto.com Coin (CRO) was down 33% and Binance Smart Chain’s Venus (XVS) DeFi protocol saw its price drop 24% to trade at $ 58.63.
A few selected projects were able to turn the tide and post positive gains on February 23, as new announcements on projects related to blockchain interoperability provided a much-needed boost to tokens-focused. layer 2 and cross-chain transactions.
Solana (SOL) rose 11.23% to trade at $ 14.94 after the release of its new automated market maker protocol Raydium. The price of Fantom (FTM) also rose 24% after the team announced a collaboration with Yearn.finance and the deployment of a cross-bridge to the Ethereum (ETH) network.
The overall cryptocurrency market cap is now $ 1.44 trillion and Bitcoin’s dominance rate is 62%.