In recent developments within the volatile world of cryptocurrencies, both Bitcoin (BTC) and Ether (ETH) experienced significant fluctuations in value. Initially, they both plunged before subsequently rising by as much as 11% in the previous 24 hours, with Solana’s SOL, Cardano’s ADA, and Binance Coin (BNB) experiencing similar increases. The overall cryptocurrency market cap also saw a boost, with the CoinDesk 20 Index surging by 7.62%.
However, earlier in the day, digital assets began to lose value following a downward trend in the wake of last week’s rally and the dissipation of highly leveraged bets on increased prices. This led to a 15% reduction in total market capitalization during the preceding week. Some investors suggested that Bitcoin displayed indications of a potential technical drop in the near future.
Nevertheless, sentiment shifted towards optimism following a dovish speech by US Federal Reserve Chair Jerome Powell during the Federal Open Market Committee meeting. Although the Fed preserved its projection for three interest rate reductions this year, despite unexpectedly high inflation statistics, the underlying message was viewed in a positive light by many in the industry.
The Singapore-based trading firm QCP Capital revealed in a daily update that the majority of buys appeared to be linked to spot trades rather than futures-based deals, which were commonly regarded as more speculative. “Demand seems to be mainly spot-driven with little change in funding rates,” QCP explained via Telegram. Flow data pertaining to Bitcoin spot ETFs should soon reveal the degree of demand in the coming hours.
Dogecoin (DOGE) skyrocketed by 18% following a March 7 filing from prominent cryptocurrency exchange Coinbase, revealing that it intends to introduce DOGE, Litecoin (LTC), and Bitcoin Cash (BCH) futures, potentially paving the way for an eventual DOGE spot exchange-traded fund (ETF). Coinbase, renowned for its stringent listing requirements and commitment to regulatory adherence, stated that DOGE had moved beyond its initial status as a joke currency due to its sustained popularity and the strength of its community. “Dogecoin’s enduring popularity and the active community support suggest that it has evolved into a fundamental part of the cryptocurrency landscape,” it added.
The article was revised by Sheldon Reback.
Leave a Reply