Dow closes below 30k as post-Fed rally fades
Cryptocurrencies are mixed on Thursday, although bitcoin and ether manage to remain above closely watched levels.
According to Dow Jones Market Data, Bitcoin fell 1.5% to $21,348 in the early afternoon from its price at 5pm yesterday and Ether is down about 5% to $1,119.
Other cryptos performed better. According to CoinDesk, Solana is up 13%, Cardano is up 6%, and Dogecoin is up 11%.
While bitcoin and ether, by far the two largest cryptocurrencies, are lower, the Federal Reserve’s move on Wednesday eased some pressure on cryptocurrencies and may spur some bargain hunters, said Naeem Aslam, AvaTrade’s chief market analyst.
Another factor is that both are close to key price levels. Bitcoin and Ether have traded slightly more than the round numbers that always attract attention this week – $20,000 for Bitcoin and $1,000 for Ether. They have been below these levels since December 2020 and January 2021, respectively. Staying above the levels has led to some hope that these prices are low enough to attract buyers and create a ‘floor’ and end to the sell-off.
But despite the bargain-hunting, Mr Aslam said the sentiment damage was so severe that $20,000 might not last long.
“It is likely that the price will continue to move lower and we will likely see larger bids now approaching the $15,000 price level,” he said.