Cryptocurrencies are recovering after the falls suffered this Tuesday. Bitcoin (BTC) once again exceeds $98,000, while Ethereum (ETH), which shows remarkable recoveryis close to US$3,700.
In altcoins, the picture is mixed. Tokens such as solana (SOL), Cardano (ADA), Tron (TRX) and Shiba inu (SHIB) manage to recover from recent setbacks, while other cryptocurrencies such as Binance coin (BNB) and Dogecoin (DOGE) maintain a negative balance in the last 24 hours, despite market advances. The PEPE cryptomeme continues to show great volatility: although it is up 3% at the moment, it has lost about 9% in the last day.
One of the main news is the rebound in XRP, the native token of Ripple’s XRP Ledger (XRPL), which rose by 10% during the afternoon of Tuesday. This increase came after Brad Garlinghouse, CEO of Ripple, announced that the company obtained regulatory approval from the New York Department of Financial Services to launch its dollar-backed stablecoin, RLUSD.
What the market expects
Bitcoin, for its part, remains trapped in the range between US$90,000 and US$100,000, an interval in which it has remained in recent weeks. According to CoinDesk analyst Omkar Godbole, the lack of catalysts such as low liquidity in the market could be affecting the behavior of the cryptocurrency.
According to data from 10xResearch, capital inflows into BTC spot exchange-traded funds (ETFs) and BTC futures have halved since the beginning of the month. Markus Thielen, founder of 10x Research, comments that this slowdown in liquidity could be making it difficult for bitcoin to maintain $100,000. Thielen also highlights an interesting pattern: Fluctuations in global liquidity appear to outpace bitcoin’s movements by about 10 weeks, suggesting the cryptocurrency could be close to peaking.
Godbole also suggests that the slowdown in chipmaker stocks, especially Nvidia, could be weighing on cryptocurrencies. Since late 2022, Nvidia stock has grown due to the push for artificial intelligence (AI), and bitcoin has shown a positive correlation with these stocks. However, Nvidia has recently fallen after China opened an antitrust investigation into it. In this context, the correlation between bitcoin and Nvidia has been 0.6 in the last three months.
In the business sphere, Microsoft shareholders have voted against the proposal to invest in bitcoin as a hedge against inflation, made by the conservative think tank National Center for Public Policy Research (NCPPR). This group will also raise the same proposal at Amazon, which will take it to a vote in April 2025.
Finally, a report from Bitwise points out that 2025 could be the year in which several cryptocurrency companies make the jump to the stock market. Kraken, the crypto exchange, and Circle, the issuer of the USDC stablecoin, are some of the notable names mentioned in this analysis.
Source: Ambito
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