Volatility Spikes in Crypto Market
Volatility spiked in the crypto market on Thursday as a renewed focus on the recently filed spot Bitcoin (BTC) exchange-traded fund (ETF) applications led to an early morning surge. Bitcoin climbed to its highest price since May 2022, only to fall as traders took profits.
Stocks Fall Amid Market Pressure
Stocks fell under pressure as U.S. Treasury yields spiked and Federal Reserve Chair Jerome Powell indicated that additional interest rate hikes could be implemented. The S&P, Dow, and Nasdaq closed in the red.
Bitcoin Corrects Lower
Bitcoin rallied to a daily high of $38,000 on Coinbase but corrected lower, briefly dipping to $35,670. Technical analyst Jim Wyckoff believes that BTC has the near-term advantage and predicts more price upside.
Pivotal Resistance Level for Bitcoin
Crypto investor Scott Melker mentioned that BTC corrected at the $38,000 level, similar to the Terra/Luna contagion event of 2022. CoinRoutes co-CEO Dave Weisberger noted that the $38,000 – $42,000 range would have held if not for cascading bankruptcies in the crypto space. Michaël van de Poppe also sees the $38,000 – $40,000 range as a pivotal resistance level.
Token Performance and Market Cap
Profit-taking resulted in losses for most tokens in the top 200, while Gas, DeXe, and ORDI recorded significant gains. Tellor, SushiSwap, and Akash Network experienced declines. The overall cryptocurrency market cap currently stands at $1.38 trillion, with Bitcoin’s dominance rate at 51.9%.