Bitcoin Holds Steady; Dogecoin Leads Slide in Major Cryptocurrencies as Traders Lock In Gains
The market saw higher-than-usual volatility this week following the collapse of crypto-friendly banks over the weekend.
Majors crypto tokens slid as traders sold holdings to lock in the past few days' gains. Dogecoin (DOGE) and Polygon’s MATIC led losses with declines of more than 8%.
Bitcoin (BTC) and ether (ETH), the two largest cryptocurrencies, stabilized at support levels, with bitcoin trading at just over $24,500 and ether little changed about $1,650. XRP and Cardano's ADA dropped 4%, while shiba inu (SHIB) fell as much as 12% after drama surrounding the code of its forthcoming blockchain on Thursday morning.
BNB coin (BNB) gained after decentralized exchange Uniswap, which processes the highest daily trading volumes among counterparts, expanded to the network. The move is expected to offer several significant benefits for both the exchange and the network, including user growth, lower fees and the ability to tap into new geographical markets.
Analysts at crypto exchange Bitfinex said indicators tracking wallet data show that while a long-term bullish trend remained intact, a shorter-term view describes the latter stages of a bear market.
"Long-term indicators still indicate strength in the crypto market, and hence, the current pullback might be close to forming the higher low expected for the past three weeks," Bitfinex told CoinDesk in an email.
"Bitcoin’s net realized profit and loss indicator suggests that the market has returned to a regime of significant realized losses. So it is important to remember that we are still in the latter stages of a bear market and not the beginning of a bull market," Bitfinex said.
The indicator calculates the net profit or loss, in dollar terms, for any certain over a specific time period. It provides a reflection of aggregate market sentiment, capital inflows or outflows, and trends in network profitability.
"It would be premature to state that the market has turned completely bullish. However, the current rise in net realized losses still pales in comparison to the peak seen during the luna crash or the FTX implosion. This is a testament to the increase in the inherent strength of the market in comparison to 2022," the Bitfinex analysts added.
Cryptocurrencies endured higher-than-usual volatility this week after investors brushed off the long-term effects of a regulatory clampdown on crypto-friendly banks and U.S. consumer price index (CPI) data pointed to slowing inflation in the coming months.
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