Cryptos Today: Bitcoin hovers at $20K as analysts warn of lower; NFTs Boost Polygon and Sandbox

Bitcoin’s (BTC) breath ran out fast yesterday afternoon after Federal Reserve Chairman Jerome Powell argued that the United States should “go ahead” and keep raising interest rates to reduce inflation, even if it means the economy to face more unemployment and a possible recession. After a short-lived relief rally, the digital currency fell back to below $20,000 in the late afternoon, a level it recovers in the early hours of this Thursday (23). At 7:10 am, BTC was trading at $20,716.

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With the move, BTC continues to accumulate a drop of 70% from the high of $69,000 reached more than seven months ago. Despite the 1.5% jump compared to the previous day, the retreat is 8% in the last seven days. Ethereum (ETH) is at $1,109, up 1.6% in 24 hours – losses are close to 10% for the week and 77% from the high of around $4,900.

“The global cryptocurrency market remains vulnerable to further selling pressure,” says Oanda Senior Analyst Edward Moya. The expert, however, notes that “a consolidation may be close as the macro environment is close to being fully priced”.

This means that the cryptocurrency’s price could be close to a market bottom, but not without testing new lows first – that is, BTC could still drop below the $17,600 it reached last weekend before resuming a bearish move. high more solid.

Yuya Hasegawa, analyst at Japanese cryptocurrency exchange Bitbank, points out that the weekend’s slump was not deep enough and that Bitcoin still has downside potential. In the meantime, investors seek to understand whether they should still get rid of positions or take the opportunity to buy.

“The feeling after the weekend is that it is necessary to calmly reassess positions, as long-term investors have the largest accumulation of unrealized losses in the last two years, at a level worse than in March 2020. , when the pandemic started”, emphasizes Humberto Andrade, senior trading analyst at Mercado Bitcoin.

Andrade recalls that the analyst Marcus Sotiriou, from GlobalBlock, considers that Bitcoin is close to a generational fund due to the forced liquidations of investors – the position is practically a consensus among analysts.

For FxPro senior market analyst Alex Kuptsikevich, investors were too premature to buy at the latest low because macroeconomic conditions and the US central bank’s monetary policy are less favorable to crypto this time around than in previous crises.

“Retail buyers risk being caught swimming against the tide, which is hardly a successful strategy,” Kuptsikevich wrote. “History suggests that enthusiasts are in danger of running out of steam soon, holding on to depreciating assets and losing confidence for years that it is worth putting money into stocks or cryptocurrencies.”

  • Watch: Why Three Arrows Capital Fund Threatens Bitcoin and Keeps Investors Sleepless?

Among altcoins, the best performer of the day is Polygon (MATIC), which is up 23% after Bentley announced the creation of NFTs on this blockchain. The Sandbox (SAND) rose 12.4% on the news that the platform will be used to recreate New York City in the metaverse, in partnership with Time magazine – digital items are created in NFT format.

In addition, Evmos (EVMOS), crypto from a project that seeks to integrate Ethereum (ETH) smart contracts with the Cosmos (ATOM) blockchain, is also up 23% today after announcing the release of its fifth version on the testnet. As a result, Cosmos’ ATOM rose another 12.6%.

Check out the performance of the main cryptocurrencies at 7:10 am:

cryptocurrency Price Change in the last 24 hours
Bitcoin (BTC) US$ 20,716.37 +1.5%
Ethereum (ETH) US$ 1,109.86 +1.6%
Binance Coin (BNB) US$ 223.72 +4.3%
Cardano (ADA) US$ 0.473163 +0.1%
XRP (XRP) US$ 0.328714 +2.5%

Cryptocurrencies with the biggest gains in the last 24 hours:

cryptocurrency Price Change in the last 24 hours
Evmos (EVMOS) $2.04 +23.2%
Polygon (MATIC) US$ 0.502237 +23.1%
Cosmos (ATOM) $7.66 +12.6%
The Sandbox (SAND) US$ 1.00 +12.4%
Enjin Coin (ENJ) US$ 0.512829 +11.5%

Cryptocurrencies with the biggest drops in the last 24 hours:

cryptocurrency Price Change in the last 24 hours
Synthetic (SNX) $3.04 -12.9%
Radix (XRD) US$ 0.065647 -4.5%
Flex Coin (FLEX) $4.46 -3.4%
KuCoin (KCS) $10.43 -2.7%
Waves (WAVES) $6.33 -1.9%

Check out how cryptocurrency ETFs closed on the last trading session:

ETF Price Variation
Hashdex NCI (HASH11) BRL 17.25 -3.08%
Hashdex BTCN (BITH11) BRL 24.63 -3.97%
Hashdex Ethereum (ETHE11) BRL 16.35 -4.38%
Hashdex DeFi (DEFI11) BRL 16.87 +3.18%
Hashdex Smart Contract Platform FI (WEB311) BRL 17.90 -3.96%
QR Bitcoin (QBTC11) BRL 6.60 -2.36%
QR Ether (QETH11) BRL 4.00 -5.43%
QR DeFi (QDFI11) BRL 3.38 +4%

See the main news from the crypto market this Thursday (23):

Coinbase shares fall more than 7%

Coinbase Global shares fell more than 7% in yesterday’s Nasdaq session, underperforming other crypto-exposed companies listed on US exchanges.

Galaxy Digital and MicroStrategy were some of the resisters, up 0.6% and down 1%, respectively. Cryptocurrency mining shares have fallen by about 3%, such as Cipher Mining, Hive Blockchain, Hut 8 and Marathon Digital.

Meanwhile, the scenario of competition between exchanges intensifies in the US. As Coinbase shares plummeted, Binance.US, the American arm of Binance, announced a zero fee for Bitcoin trading on its platform.

SEC move made Fed change view on crypto custody

Fed Chair Jerome Powell said on Wednesday that a recent move by the US Securities and Exchange Commission (SEC) caused the US central bank to change its view on digital assets held by lending platforms. .

The SEC has advised companies holding client digital assets that they would need to consider those assets as belonging to the companies’ own balance sheets. The move prompted Coinbase to issue a statement warning that, therefore, in the event of bankruptcy, customer assets would be used to pay creditors, which generated customer complaints and sparked an alert at the Fed.

“Custody assets are off balance sheet [das empresas]always have been,” Powell told the US Senate Banking Committee yesterday.

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