Bitcoin Dip Monday: Correction or Profit Opportunity?
Bitcoin lost ground throughout Monday, falling to $22.5K in early trading on Tuesday, down 6% from its peak on Sunday. Total cryptocurrency market capitalization fell 1.1% overnight to $1.04 trillion, with easy-to-find altcoins trending positive overnight.
While institutional selloffs put pressure on Bitcoin, it is still trying to swim against the tide, gaining 0.7% today to $22.8K. On the technical side, the latest pullback is too small to be considered a full-fledged correction capable of attracting new buyers to the downside.
Bitcoin now has a much higher chance of continuing its profit-taking slide from the rally since the beginning of the year. These can be as low as $22.1K or even $21.0K. The attraction to defensive assets intensified prior to the FOMC decision as market expectations and Fed rhetoric diverged sharply.
According to CoinShares, investments in cryptocurrency funds rose $117 million last week, the highest level in six months, and investors focused on bitcoin. Investments in bitcoin-related funds increased by $116 million, Ethereum by $2 million, and inflows of funds allowed short bitcoin to increase by $4 million.
Crypto News: Anti-Money Laundering Measures For Crypto Taken
Vailshire founder Jeff Ross suggests that Bitcoin is likely to rise to $25,000 any time soon. According to him, the strength of BTC on the 4-hour chart is still impressive.
South Korea will introduce a cryptocurrency transaction tracking system in 2023 to combat money laundering and recover illegally obtained funds.
The value of bitcoin on Nigeria’s popular NairaEX exchange has jumped to nearly $39,000 in local currency terms, 65% higher than the price of BTC on the global market. The discrepancy is due to the country’s central bank’s ATM withdrawal limit. The central bank is trying to reduce the proportion of cash in circulation to increase acceptance of the digital naira (eNaira).
by Alex Kuptsikevich, Senior Market Analyst at FxPro