The crypto markets have seen a dark 24 hours following hacks and false news in the market. However, that did not last long. The digital asset market’s resilience has been witnessed since Asian markets opened this morning. As reported, Bitcoin’s price sits above $29,400.
Both bitcoin and ether started the Asian trading day in the green, with bitcoin up 2.2% and ether up 0.8%. This comes as Eastern markets open in the negative following Fitch’s reduction of the United States’ long-term ratings to AA+ from AAA.
Crypto markets have been in turmoil for the last 24 hours
Yesterday, price trends in the crypto market remained bearish as traders assessed an upsurge of negative fundamentals emerging across the industry. The digital asset market’s net capitalization declined 2% to $1.16 trillion on August 1.
The drop came a day after the Financial Times reported that the US Securities and Exchange Commission (SEC) had directed Coinbase, a US-based crypto exchange, to delist all cryptocurrencies except Bitcoin (BTC) from its exchange.
Coinbase, however, deemed the report to be false, explaining that the Financial Times omitted context regarding its conversations with the SEC.
However, the clarification failed to help the crypto market’s recovery as Curve Finance’s $47 million breach over the weekend hampered its upside potential. Since the exploit, the market’s value has decreased by $43 billion, or 3.75 percent.
The recent increase in the US dollar index (DXY) has exacerbated the crypto market’s losses.
On August 1, the index rose 0.57% to 102.43, its highest level in three weeks, as investors continued to digest the Fed’s rate move last week. It has recovered nearly 3% from its low on July 13, when the digital asset market reached a session high of $1.22 trillion.
Technically, the crypto market is testing a reliable short-term support level around $1.12 trillion, with an eye on a rebound towards $1.18 trillion, which has served as resistance since March 2023.
According to Santiment, the wealthiest crypto wallets began amassing stablecoins in late July, precisely as the price of Bitcoin, the leading coin by market share, fell below its critical psychological level of $30,000.
Crypto markets surge – here’s why
Amid the negative segments, as expected, the digital asset market has surged past these pains. At the opening of today’s markets, both the market capitalization of cryptocurrencies and the price of Bitcoin have increased substantially. Why?
MicroStrategy, a company that specializes in business intelligence, reported a $22.2 million profit in its second quarterly financial report. Additionally, the company stated that it intends to sell stock in order to add more Bitcoin.
Given MicroStrategy Chairman Michael Saylor’s extensive Bitcoin investments in the past, the market interpreted the transaction as an indication that the company could buy additional Bitcoin, thereby increasing the token’s value.
According to data from CoinMarketCap, Bitcoin rose 0.78 percent in the last 24 hours to US$29,440.29 as of 7:40 a.m. local time in Hong Kong. Overnight, the world’s largest digital coin fell below the $29,000 support line to a low of $28,657.02 before recovering.
Bitcoin’s price has also resisted significant volatility induced by the U.S. Federal Reserve’s decision at its last meeting on July 26 to raise interest rates to between 5.25% and 5.50$, the highest level since January 2001.
Ether rose 0.63% to $1,869.92, gaining 0.57% over the past week, while the majority of the top 10 non-stablecoin cryptocurrencies also rose. The BNB token on Binance led the gainers, increasing 2.36% to $247.07 and gaining 3.90% weekly.
Tuesday saw the launch of Binance Japan K.K., the subsidiary of the world’s largest crypto exchange, Binance. With the introduction, the Japan exchange introduced BNB for the first time in the nation, joining 33 other tokens available to platform users.
Elsewhere, Litecoin rose 1.61% to US$93.65, contributing to its 4.59% weekly increase.
The Litecoin halving event is scheduled for Wednesday evening. It is anticipated that the halving will reduce mining rewards, thereby increasing its scarcity and possibly causing a price increase.
In the last twenty-four hours, the total crypto market capitalization increased by 0.06% to $1.18 trillion, while trading volume increased by 30.09% to US$37.11 billion.
