Other cryptocurrencies were little moved on Monday, stabilizing after falling in early trading. As the market gets excited about the launch of a new spot Bitcoin exchange-traded fund, crypto traders are hoping for the next big profit trigger that could arrive as early as April.
Bitcoin’s price rose less than 1% in the past 24 hours to $43,150, although it had previously fallen as low as $42,250 before rebounding. The largest cryptocurrency is still well off its January peak of more than $48,000, its highest since early 2022, amid a trading frenzy surrounding the launch of the first U.S. spot Bitcoin ETF.
“Bitcoin was bought back twice as it fell to $42,200. This solid support significantly dampened the onslaught of sellers, and the price quickly returned to $43,000, its center of gravity since early December. Currently, the 50-day moving average is also located there, suggesting that the market has not decided on a direction yet, ”said Alex Kupczykevich, analyst at the broker FxPro.
Bitcoin is likely to continue moving in line with other risk-sensitive assets, namely stocks, in the coming days and weeks as investors remain focused on the outlook for inflation and interest rates. A flurry of economic data and central bank speakers could shift tokens this week, but traders are also betting on the next major crypto catalyst, especially as the hype for the long-awaited Spot Bitcoin ETF fades. I’m paying attention.
“The monopolistic factors in the crypto market (such as Bitcoin ETFs) have worked so far, forcing investors to wait for the next signal,” Kupczykevich said.
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It may only take until April. The focus is on Bitcoin’s next “halving,” a programmatic monetary policy change for the cryptocurrency that could put pressure on supply and push up prices. Bitcoin has a strong track record of halvings that occur every few years, with the next halving likely to occur in April.
The second-largest cryptocurrency rose 1% to $2,330. Smaller tokens and altcoins were more mixed.
decreased by 1%,
1% for green; Meme coins were quieter.
Both remain flat.
Email Jack Denton at email@example.com.