Major coins saw a deep correction Thursday and continued to trade in the red at press time as the global cryptocurrency market cap sank 5.58% to $2.51 trillion.
What Happened: The apex cryptocurrency, Bitcoin BTC/USD fell 5.49% to $57,286.84. Over a seven-day period, it has shrunk 11.78%.
BTC is now down 17.05% from its most recent all-time high of $68,789.63, which it touched last week.
Ethereum ETH/USD was down 5.71% to $4,080.11 over 24 hours. For the week, it has declined 13.84%.
Dogecoin DOGE/USD traded 6.91% lower at $0.22 over 24 hours. Over a seven-day period, it has fallen 14.86%.
The top 24-hour gainers as per CoinMarketCap data were Decentraland, The Sandbox, and Algorand.
Decentraland shot up 25.23% to $4.10, The Sandbox rose 15.91% to $4.35, while Algorand rose 10.29% to $1.88 in the period. The Sandbox hit an all-time high of $4.68 on Thursday.
See Also: How To Buy Bitcoin (BTC)
Why It Matters: Traders are “reining in some of the excessive speculation” that sent Bitcoin soaring as regulation looms, wrote Freddie Evans, a sales trader at the United Kingdom-based broker GlobalBlock.
“Central bank officials say changing trends and developments on the regulatory and monetary side could also halt the gains for digital assets,” Evans said in an emailed note.
A group of bipartisan lawmakers in the United States has introduced a bill that would clarify the definition of a broker in the recently signed Infrastructure Investment and Jobs Act.
Rep. Patrick McHenry (R-N.C.) tweeted that he introduced the bipartisan bill dubbed “The Keep Innovation in America Act” in order to “provide clarity” to those “deploying the next generation of internet [technology].”
I introduced this bipartisan bill w/ @RepTimRyan to fix the new poorly constructed #digitalasset reporting requirements.
— Patrick McHenry (@PatrickMcHenry) November 18, 2021
The Keep Innovation in America Act will provide clarity to innovators deploying the next generation of internet #technology. https://t.co/cAMWsPoiD8
On the monetary side, expectations of a rate hike are propelling the greenback to new heights.
Chart Depicting Dollar Index Vs. Fed Funds Futures — Courtesy Delphi Digital
On Tuesday, the dollar index, a measure of the U.S. unit’s strength against six major peers, rose to a 16-month high, noted Delphi Digital, an independent research firm.
“A stronger greenback would have you believe the same tailwinds that propelled global asset prices – including BTC and crypto – over the last 18 months are starting to reverse course, and that assumption wouldn’t be entirely misguided,” Delphi Digital wrote in an emailed note.
Market Value to Realized Value (MVRV) — a measure of the ratio between BTC’s market cap and realized cap — is far below previous highs. This is a sign that the apex coin “still has more room to run,” as per Delphi Digital.
Chart Showing MVRV — Courtesy Delphi Digital
GlobalBlock’s Evans said that Ethereum exchange outflows reached their all-time highs Wednesday as the cryptocurrency lost 15% of its value dipping below the $4,000 mark.
“This shows that the majority of Ethereum holders retained their confidence in the token and have been buying the dip in mass,” noted Evans.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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