Bitcoin, Ethereum, Dogecoin slide amid interest rate hike fears

Major coins traded in the red on Tuesday night, as the cryptocurrency market cap fell 2.21% to $1.10 trillion in the past 24 hours.

Cryptocurrency Profits (+/-) Price
Bitcoin -2.07% $24,326
Ethereum -2.82%


Dogecoin -2.93% $0.085

What happened: The largest cryptocurrency by market value, Bitcoin (CRYPTO: BTC), was trading below USD 25,000. Ethereum (CRYPTO: ETH) switched hands for $1,654, down 2.82%. Dogecoin (CRYPTO: DOGE) was trading at $0.085, down 2.93% in the past 24 hours.

US equities fell on Tuesday as higher interest rates and weak retail earnings weighed on market sentiment. The S&P 500 fell 2.00%, its worst day since December 15, and all sectors ended lower. The technology-heavy Nasdaq Composite fell 2.50%.

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Coin base (NASDAQ:COIN) highlighted regulatory compliance and its leadership position in the US digital asset industry as a beneficial force in its fourth quarter 2022 earnings report.

“As the SEC expands its jurisdiction, other agencies seem to prefer crypto to be pushed out of the regulatory sphere,” said Coinbase, citing recent warnings from the US banking regulator to financial institutions about holding crypto on public blockchains. .

Polygon Labs, the operator of the Polygon protocol designed to speed up and lower the cost of Ethereum transactions, has cut its workforce by 20%, which equates to a loss of about 100 employees.

Notes from the analyst: “Bitcoin traders seem to be ignoring a laundry list of bearish macro drivers including; a return of the stronger dollar as the bond market rally returns, downward pressure on equities as investors price in more rate hikes from the Fed, and concerns that stablecoin regulation could put further pressure on cryptos. It seems that Bitcoin’s correlation with most risky assets is changing. The crypto winter that saw prices collapse from $68,911 to $15,485 seems to have priced in enough of the bad news,” said Edward Moyasenior analyst at OANA, seen in a note by Benzinga.

“Bitcoin still respects the key USD 25,500 level, but a break could open the door for momentum traders to take a bigger move higher. Initial resistance would come from the USD 28,000 level, but most traders may have their eyes on the USD 30,000 psychological level.”

Crypto Analyst Michael van de Poppe has provided some advice for those considering investing in Bitcoin. He said when Bitcoin was at $25,000 people wanted to buy in at $22,000, but when it dropped to $22,000 they wanted to buy in at $19,000. In the end, they buy for $30,000 and emotions get the better of them. “Avoid emotions, trade prices. Just dollar cost average,” he tweeted.

pseudonymous analyst said Kaleo Bitcoin is on the cusp of an explosive breakout and expects it to clear its diagonal resistance and rise to $30,000 in the coming days. After this wave, Kaleo expects a short pullback that could turn the resistance into a form of support. “$30,000 is a magnet, but so is $40,000.”

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