Bitcoin Falls as Grayscale vs US Regulators Battle Continues
Bitcoin, the largest cryptocurrency, saw a drop in its price during the early trading session on Monday, while other top crypto assets were trading mixed. This drop marked the worst weekly decline for Bitcoin since the FTX crash in November 2022. The ongoing court battle between Grayscale and US regulators has weighed on the crypto prices, while traders are eagerly awaiting macroeconomic cues later in the week.
Bitcoin Under Selling Pressure
Bitcoin continued to remain under selling pressure as the largest crypto token dropped further but managed to barely hold above $26,000-levels. In contrast, its largest peer, Ethereum, gained about half-a-per cent to hold above the $1,675-mark. The price action in the altcoins was on the mixed side.
Reasons Behind the Price Fluctuations
According to Edul Patel, Co-Founder & CEO at Mudrex, Bitcoin is currently priced around the $26,000 level due to widespread token selling by traders spurred by unrelated triggers like a lack of clarity in the Grayscale versus US SEC case for a Bitcoin ETF, SpaceX writing down the value of their Bitcoin reserves, and China’s Evergrande group filing for bankruptcy.
Altcoin Movement
Ethereum has been maintaining a position above $1,600, while over the past 24 hours, altcoins Ripple, Litecoin, and Stellar have each grown in value by more than 3 per cent. However, all other top crypto tokens were trading mixed on Monday, with Litecoin and XRP being among the gainers, while Solana and Shiba Inu experienced losses.
Global Cryptocurrency Market Cap and Trading Volumes
The global cryptocurrency market cap was trading flat, slightly up to $1.06 trillion-mark as it inched up less than half-a-per cent in the last 24 hours. However, the total trading volumes dropped almost 9 per cent to $22.04 billion.
Tech View by Giottus Crypto Platform
Cardano (ADA) is currently trading at $0.27 and is attempting to reverse its decline from last week. ADA managed to regain some of its losses over the weekend and is attempting a breakout from descending wedge. Its RSI levels (currently at 38) display positive divergence within the falling wedge pattern, which may increase the chances of a bullish reversal leading to an upside breakout.
Key Levels for Cardano (ADA)
The token can have a rally if it manages to break the key resistance level of $0.30 (its 50-day EMA). On the flip side, $0.23 is likely to be a strong support zone.
The views and recommendations given in this section are the analysts’ own and do not represent those of any specific publication. It is recommended to consult a financial adviser before taking any position in the mentioned assets.
I have been writing about crypto for over two years. I have a vast amount of experience in the industry and my work has been featured on some of the biggest publications in the space.
