Bitcoin bounced up from dollar20K, but lack of reasons for a rally
Categories: Crypto News US
Bitcoin was down 0.7% on Wednesday, ending it near $21.8K, although it was a hair away from $20K in the first half of the day. Ethereum gained 5% in the past 24 hours, losing 35% in 7 days. Altcoins from the top 10 are growing ahead of the curve, rising between 7% (BNB) and 18.6% (Solana).The top altcoins are behaving better than the flagships (ETH, BTC) this week, as they have fewer institutions and crypto enthusiasts find them relatively stable and still cheap. According to CoinMarketCap, the total crypto market capitalization increased by 5% overnight to $0.94 trillion. The Bitcoin dominance index fell 0.6 points overnight and 2.2 points in 7 days to 44.3%. The resulting rebound is not easy to count on because of easing financial conditions. Bitcoin's recovery to Tuesday's levels looks like a technical surge after a quick collapse. Yesterday, financial markets tightened their sharpest monetary policy in nearly 30 years, which hardly adds to the appeal of cryptocurrencies for the foreseeable future. Investors and traders should be prepared that yesterday's rally could end soon. We need to be prepared that cryptocurrencies and riskier assets are unlikely to return reliably to the financial markets before there are signs that the economy has slowed.According to market legend Peter Brandt, people are willing to buy anything hoping to "ace" it, but end up losing their hard earned money.