- The price of Bitcoin and other major cryptocurrencies (altcoins), as well as the U.S. CPI, are expected to be weak.
- An observer noted that the current pullback may soon lose steam, as the selling pressure of wallets which have a long history of holding on to coins is waning.
Bitcoin (BTC) Under $69,000 is in the red, with a drop of 2.5% on a 24 hour basis. It had briefly reached a peak of $69300 during Asian trading hours.
The profit-taking that began on Monday has continued, as major tokens continue to fall. Ether and Solana’s SOL fell 2.8%, while Cardano’s ADA and Dogecoin (DOGE), both of which are based on Cardano, dropped as much as 4%. BNB Chain BNB, the token that was in green at 1.8% growth, was the only one.
Broad-based CoinDesk 20,A liquid index of major tokens, without stablecoins was down by 3%.
Alex Kuptsikevich, Senior Market Analyst at FxPro, told CoinDesk that the demand in the Asian session for bitcoin, and other leading altcoins, represented trade optimism. He warned of a potential volatility spike following the U.S. Consumer Price Index release later on Wednesday.
The U.S. CPI Report, which has in recent years caused a surge in volatility similar to NFP [nonfarm payrolls report]Kuptsikevich said that the potential for Wednesday’s market to be influenced is impressive.
Some analysts believe the bitcoin correction is over. Glassnode, an on-chain analytics firm, said that the selling pressure of certain long-term bitcoin wallets has cooled over recent weeks. Today’s report.
Analysts at the blockchain tracking company Glassnode noted that “Bitcoin’s impressive performance in the past 12 months has been supported by an increase in exchange deposits and withdrawals, as well as spot trade volumes.” Profit-taking has cooled down since recent weeks. The U.S. Spot ETFs have also boosted demand.
Long-term holders are defined by the firm as wallets which keep tokens for longer than 155 calendar days, instead of reselling them on a weekly or daily basis.
Omkar Godbole is the editor.