Major cryptocurrencies on Wednesday traded mixed with the bullish momentum showing signs of waning. This shift in momentum can be attributed to the early exchange-traded funds (ETF) flows, which have failed to meet the high market expectations.
| Cryptocurrency | Gains +/- | Price (Recorded 9:30 p.m. EST) |
| Bitcoin BTC/USD | -0.79% | $42,655 |
| Ethereum ETH/USD | -1.90% | $2,527 |
| Dogecoin DOGE/USD | +0.64% | $0.081 |
What Happened: Bitcoin’s surge has come to a halt, as the cryptocurrency now trades 10% lower from its recent highs near $49,000. This pullback occurred following the launch of 11 spot ETFs and their subsequent trading in the U.S. last Thursday.
In another major development, a federal judge in Manhattan engaged in a rigorous questioning of Coinbase and the U.S. securities regulator, probing their conflicting perspectives on the classification of digital assets as securities, Reuters reported.
Coinbase has petitioned the court to dismiss the Securities and Exchange Commission’s (SEC) lawsuit, which alleges that the largest U.S. crypto exchange is violating its regulations.
During the hearing, Judge Katherine Polk Failla deliberated on the legal precedent that determines securities and scrutinized the characteristics of various crypto tokens traded on Coinbase and other platforms, which the regulator has identified as investment contracts.
Following the over four-hour hearing, Failla refrained from delivering a verdict from the bench, indicating that she was still evaluating certain aspects of the case.
Top Gainer (24 Hour)
| Cryptocurrency | Gains +/- | Price (Recorded 9:30 p.m. EDT) |
| dydx ETHDYDX/USD | +3.62% | $3.05 |
| Render RNDR/USD | +2.87% | $4.18 |
| Astar ASTR/USD | +1.81% | $0.16 |
The global cryptocurrency market cap now stands at $1.70 trillion, showing a 1.04% increase in the past 24 hours.
Stocks slid on Wednesday as Treasury yields surged following the release of U.S. economic data. The S&P 500 decreased by 0.56% to conclude at 4,739.21, while the Nasdaq Composite also experienced a 0.59% dip, ending the session at 14,855.62.
December’s retail sales data surpassed expectations, signaling a resilient consumer base and casting doubt on aggressive rate cuts from the Federal Reserve. Retail sales exhibited a 0.6% increase from November and a 0.4% month-over-month gain, excluding auto sales. Economists surveyed by Dow Jones had anticipated a 0.4% month-to-month surge in retail sales and a 0.2% increase excluding auto sales.
The 10-year Treasury yield observed a nearly 4 basis point uptick, reaching 4.102%. This comes amid Federal Reserve Governor Christopher Waller’s warning that monetary policy easing may proceed at a slower pace than previously anticipated.
See More: Best Cryptocurrency Scanners
Analyst Notes: Cryptocurrency analyst Michael Van de Poppe has stated that Bitcoin is poised to consolidate within its current range, with the hype surrounding the ETF slowly diminishing.
"The launch of the ETF was one of the best performing launches in terms of net inflow and volume, and will show in the coming years. Potential resistance at $46K and support at $39-41K."
According to Van de Poppe, the possibility of Bitcoin falling below $41,000 existed before seeing a surge of over 630% to reach $300,000.
"The range is defined on Bitcoin. Perhaps we’ll have another run pre-halving, but more or less dips to be bought sub $41K makes a lot of sense. Just before Bitcoin goes to $300,000."
Pseudonymous cryptocurrency analyst Daan Crypto Trades said Bitcoin Open Interest is still "nowhere close to recovering what it was after last week’s flush. Price likely chopping around for a while I’m assuming."
Santiment, an on-chain analytical firm, said Altcoins are creating separation from one another as market polarity continues after last week’s big news.
Photo by SvetlanaParnikova on Shutterstock
Read Next: Jim Cramer Advises Against Using Binance, Provokes Strong Reactions From Twitter Users
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
