Bitcoin (BTC) has managed to resurface above US$23,000 after dipping below that level earlier this week much to the chagrin of long traders who saw their positions get wiped out.
The benchmark crypto asset remains highly volatile though, with bulls and bears fighting for control of the 23k price point.
Binance’s depth chart on the BTC/USDT pair shows no clear advantage either way, so it should make for a fun trading session, especially with the Federal Reserve’s interest rate decision due today.
Any hawkish sentiment expressed in the Fed’s post-meeting press conference could damage risk-on sentiment and drive BTC lower, though the opposite is also true - if a pause on further rate hikes is announced, investors could potentially drive risk assets such as bitcoin higher.
Either way, BTC/USDT is clearly showing signs of normalisation after January’s stunning rally.
Bitcoin (BTC) slows following strong January gains – Source: currency.com
Ethereum (ETH) has also started to trade sideways in a post-January come-down and is currently changing hands at US$1,570 on the ETH/USDT pair.
When comparing performance against bitcoin, ETH clearly underperformed throughout January, though the ETH/BTC pair has been chalking up fewer losses in more recent days.
In the altcoin space
The CoinDesk Market Index (CMI), which tracks non-bitcoin crypto assets, stayed put at 1,077 overnight, indicating menial price action in the altcoin space.
Trending tokens include DYDX, the native token of dYdX, which rallied 23% overnight and nearly 70% week-on-week following publication of its inaugural annual report.
Mid-tier blockchain network Threshold (T) and Fantom were also top overnight risers.
Among the large-cap blockchains, Polygon (MATIC) continues to be the strongest weekly performer, followed by Avalanche (AVAX).
Global cryptocurrency market capitalisation currently stands at US$1.04tn while total value locked across all decentralised finance (DeFi) protocols has remained a steady US$47.5bn.