Major coins traded in the red on Tuesday evening, with the cryptocurrency’s market cap declining 2.21% in the past 24 hours to $1.10 trillion.
What happened: Largest cryptocurrency by market value, Bitcoin (CRYPTO:BTC), was trading below $25,000. Ethereum (CRYPTO:ETH) was changing hands at $1,654, down 2.82%. Dogecoin (CRYPTO:DOGE) was trading at $0.085, down 2.93% in the past 24 hours.
U.S. stocks fell on Tuesday as rising rates and weak retail earnings weighed on market sentiment. The S&P 500 fell 2.00%, marking its worst day since Dec. 15, and all sectors ended lower. The tech-heavy Nasdaq Composite fell 2.50%.
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Coinbase (NASDAQ:COIN) highlighted regulatory compliance and its leadership position in the U.S. digital asset industry as an advantageous strength in its fourth quarter 2022 earnings report.
“As the SEC moves to expand its jurisdiction, other agencies seem to prefer crypto to be kicked out of the regulatory sphere,” Coinbase said, citing the US banking regulator’s recent warnings to financial institutions about holding crypto. on public blockchains.
Polygon Labs, the operator of the Polygon protocol designed to speed up and reduce the costs associated with Ethereum transactions, has reduced its workforce by 20%, which equates to a loss of approximately 100 employees.
Analyst Notes“Bitcoin traders appear to be ignoring a long list of macro bearish factors that include; a stronger dollar return as the bond market rallies, downward pressure on stocks as investors assess more interest rate hikes. the Fed and fears that stablecoin regulations could put additional pressure on cryptos It seems that Bitcoin’s correlation with riskier assets is changing The crypto winter that has seen prices dip crashing from $68,911 to $15,485 seems to have priced in enough bad news,” said Edouard Moyasenior analyst at OANA, in a note seen by Benzinga.
“Bitcoin is still respecting the key $25,500 level, but a break could open the door for momentum traders to target a bigger move higher. Initial resistance would come from the $28,000 level, but most traders may have eyes on the psychological level of $30,000.”
Crypto analyst Michael van de Poppe offered some tips for those considering investing in Bitcoin. He said that when Bitcoin was at $25,000 people wanted to buy at $22,000, but when it fell to $22,000 they wanted to buy at $19,000. In the end, they end up buying at $30,000 and emotions take over. “Avoid emotions, negotiate prices. Just the average dollar cost,” he tweeted.
When #Bitcoins is at $25,000, people want to buy at $22,000.
When #Bitcoins is at $22,000, people want to buy at $19,000.
When #Bitcoins is at $19,000, people want to buy at $12,000.
The end by buying $30,000.
Avoid emotions, trade prices.
Just the average cost in dollars.
—Michael van de Poppe (@CryptoMichNL) February 21, 2023
Pseudonymous analyst Kaleo said Bitcoin is on the verge of an explosive breakout, expecting it to clear its diagonal resistance and climb as high as $30,000 in the next few days. Following this surge, Kaleo anticipates a brief pullback that would allow resistance to turn into a form of support. “$30,000 is a magnet, but so is $40,000.”
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