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Today’s Crypto Market Update: Bitcoin and Ether Experience Declines Following Decision to Keep US Interest Rates Unchanged

On Thursday, February 1, the crypto market experienced predominantly negative trends as reflected in the price chart. Bitcoin encountered a loss of 2.28 percent, causing its value to dip below the recently reclaimed threshold of $42,400 (approximately Rs. 35 lakh). As of the current moment, BTC is trading at $42,020 (roughly Rs. 34.8 lakh). The CoinDCX team, in response to this situation, informed Gadgets360 that the crypto market transitioned from positive to slightly bearish conditions over the past 24 hours, driven by the Federal Reserve’s decision to maintain unchanged interest rates.

Ether mirrored Bitcoin’s decline, recording a loss of 3.78 percent, with its current value at $2,258 (approximately Rs. 1.87 lakh).

According to the CoinDCX report, BTC is positioned within its range, situated in the middle, and the rising dominance of BTC is causing declines in most altcoins. ETH reflects a similar situation, trading within its established range. Additionally, the movement of funds through ETFs is influencing market sentiment and contributing to overall market dynamics.

Several cryptocurrencies, including Cardano, Avalanche, Dogecoin, Polkadot, Chainlink, and Polygon, exhibited losses on Thursday. Binance Coin, Solana, Ripple, Tether, USD Coin, and Leo also experienced price dips.

The decision by the Federal Reserve to maintain interest rates dealt a blow to predictions of cuts, impacting Bitcoin’s value. Rajagopal Menon, Vice President of WazirX, commented that the next catalyst could be an increased demand with less supply due to BTC ETF access, potentially causing a price surge. Technical indicators for Bitcoin present a mixed picture, with moving averages signaling a ‘buy’ while the Ichimoku Base Line remains neutral.

The overall crypto market valuation notably dropped by 8.35 percent in the last 24 hours, with the total market cap standing at $1.51 trillion (approximately Rs. 1,25,30,410 crore) according to CoinMarketCap.

Despite the overall downturn, Tron, Monero, Iota, Braintrust, and Dogefi managed to reflect small gains.

In a significant development, during a court hearing, FTX’s lawyer mentioned that they expect FTX customers to be paid in full, implying that if a customer held 1 BTC when its price was around $16,000 (roughly Rs. 13.2 lakh), they would receive the full $16,000 back instead of 1 BTC. However, there are doubts about the exchange restarting operations. This news coincided with crypto lender Celsius emerging from bankruptcy and beginning the distribution of over $3 billion of assets to its creditors, as reported by CoinSwitch Markets Desk to Gadgets360.

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