Major coins traded higher on Wednesday as global market capitalization surged 4.10% to $1.06 trillion at 8:30 pm EST.
What happened: The largest cryptocurrency by market value, bitcoin Bitcoin/US dollarrebounded from a swoon on Tuesday and traded above $23,000. Ethereum Ether/US dollar rose more than 5% to $1,623. Dogecoin DOGE/US dollar up 4.58% in the last 24 hours, trading at $0.086.
US equities experienced a volatile trading session on Wednesday, as the high-tech Nasdaq Composite, S&P 500 and Dow Jones Industrial Averages fell slightly by a few percentage points. Investors have been seen weighing in on the latest batch of fourth-quarter reports, primarily from iconic firms like Boeing and Microsoft. Meanwhile, many other stocks drifted sideways as the day progressed, leaving traders on the lookout for the next change in sentiment.
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Electric vehicle manufacturer Tesla TSLA reported in its latest earnings report that it did not buy or sell bitcoin in the fourth quarter for the second quarter in a row. The value of its digital assets was $184 million at the end of the quarter, down from $218 million at the end of the third quarter due to impairment losses caused by the decline in the price of Apex Coin. At the end of the third quarter, bitcoin was worth less than $20,000, while at the end of the fourth quarter it was about $16,500.
“Bitcoin continues to trade in a roughly $1,000 range from $22,300 to $23,300 and is down just over 1% on the day. Under these circumstances, we are seeing decent resilience, with sentiment elsewhere becoming more negative. Taking into account the achievements that preceded it, the longer it can hold onto them, the more confident the crypto community will feel in its resilience and will be tempted to return. recently, said Edward MoyaSenior Market Analyst at OANDA, in a note read by Benzinga.
Moya added: “Bitcoin has fallen as a wider sell-off on Wall Street has put many traders into risk-off mode. The January rally in the stock market may end and this could lead to a decline in the cryptocurrency. Bitcoin could drop to the $20,000 level if the tech-driven Wall Street sell-off intensifies over the next few days.”
cryptanalyst Michael van de Poppe said he would be interested in buying bitcoin at two levels: $23,093, which he calls “decisive breakout resistance,” and $21,410.
Kaleo, a pseudonymous analyst, said he had never been so optimistic about bitcoin in his life. The analyst believes that the current rally will quickly accelerate and the price will reach the $40,000-$45,000 range within a few weeks. However, Kaleo is not expecting a new all-time high (ATH). Instead, he predicts consolidation in the same range for several months before the price returns to the $20,000 mid-to-high later this year. “Just really believe that we [due] for a huge divine candle in the near future,” the analyst added.
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