Bitcoin and other top crypto tokens lost their mojo on Thursday as the top crypto tokens posted big cuts. The inflation data from the UK dented the market sentiments, coupled with massive sell order on Binance. Macroeconomic data is likely to remain a key trigger for the markets.
Bitcoin dropped as much as 5 per cent to slip sharply below the $29,000 mark in the last 24 hours. Its largest peer, Ethereum, dropped more than 7 per cent and breached below the $1,950 level. Pain in the altcoins, however, was severe.
Bitcoin experienced a decline to below the $29,000 level following the release of UK inflation figures that exceeded expectations, indicating a 10.1 per cent increase in the 12-month period. This drop led BTC to its lowest point since April 10, with the next significant support level at $28,500, said Edul Patel, CEO and Co-Founder at Mudrex.
“Ethereum saw a 7 per cent decrease over the same period, trading at the $1,900 level. The market responds with a typical reaction to unexpected events, prompting investors to move away from riskier assets. So, it might take some time for investors and traders to assess the potential impact of the inflation data and recover from the incident,” he said.
All of the top crypto tokens were trading with big cuts on Thursday. Even the stablecoins were trading in red. Litecoin plunged 11 per cent, whereas Avalanche tanked 10 per cent. Solana was down 8 per cent, while Polygon and Polkadot tumbled 7 per cent each.
The global cryptocurrency market cap was trading steeply lower, around $1.21 trillion, dropping more than 5 per cent in the last 24 hours. However, the total trading volumes soared about 40 per cent to $63.51 billion.
Tech View from WazirX Trade Desk
Beta Finance(BETA) is a decentralized financial platform built on Ethereum that enables users to borrow, lend, and short various crypto assets without requiring permission. It offers a convenient and scalable money market that automatically and freely lists tokens, allowing users to short them as well.
BETA had been on a steady decline since August last year. On the daily timeframe the chart has broken above the descending trendline. We could expect the momentum to continue for a few more days. The next resistance is expected at $0.115 and the next support is expected at $0.065 levels
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