Cryptocurrencies

Market Wrap: Bitcoin Drops to Near $56K as Spot Trading Volume Remains Low

CoinDesk Bitcoin Price Index
  • Bitcoin (BTC) trading around $56,140.49 as of 20:00 UTC (4 p.m. ET). Slipping 3.72% over the previous 24 hours.
  • Bitcoin’s 24-hour range: $55,541.91-$58,645.77 (CoinDesk 20)
  • BTC trades below its 10-hour and 50-hour averages on the hourly chart, a bearish signal for market technicians.

Bitcoin slid for a second day as the No. 1 cryptocurrency saw flat trading volume, typical of a rangebound market.

Bitcoin’s spot trading volume on eight U.S.-focused crypto exchanges tracked by CoinDesk was largely unchanged on Wednesday. The trading volume has been around or below $3 billion for seven days now.

The oldest cryptocurrency is looking at a price support level around $54,000, as CoinDesk reported earlier, with resistance around $60,000.

Related: China, the Convenient Foil

On the buyers’ side, bitcoin’s “kimchi premium,” the difference between prices on South Korean exchanges and other global avenues, dropped significantly on Wednesday, an indication of weakened bitcoin demand from traders and investors in the East Asian country.

Read More: Bitcoin Drops 6% in Korea, Shrinking the ‘Kimchi Premium’

Bitcoin fell by over 6% against the Korean won (KRW) after South Korean exchange Upbit suspended KRW withdrawals and deposits before markets opened in the U.S. on Wednesday morning.

Some analysts remain positive on the long-term price trend. Katie Stockton, a technical analyst at Fairlead Strategies, told CoinDesk that the intraday declines of between 3% and 6% are less impactful on the price charts. Instead, the losses suggest ongoing support from trend and momentum indicators.

Related: Kraken’s First Brink Grant Goes to Bitcoin Rust Developer

Read More: Bitcoin Still Has Support From Long-Term Uptrend, Says Technical Analyst Katie Stockton

Ether and altcoins

  • Ether (ETH) trading around $1,981.56 as of 20:00 UTC (4 p.m. ET). Slipping 6.29% over the previous 24 hours.
  • Ether’s 24-hour range: $1,933.91-$2,129.39 (CoinDesk 20)
  • Ether trades below its 10-hour and 50-hour averages on the hourly chart, a bearish signal for market technicians.

After having logged three days of gains, ether saw a price pullback Wednesday, slipping below $2,000 for the first time since April 3.

Other alternative cryptocurrencies (“altcoins”) also suffered losses, according to CoinDesk 20.

Analysts at the cryptocurrency data firm Messari have highlighted the so-called “Coinbase effect” where new digital tokens such as cardano tend to receive a quick price pump after they become available on the U.S. crypto exchange giant Coinbase.

The average return after tokens being listed on Coinbase stands at around 91%, according to Messari. It is much higher than the exchange pump effect on other major exchanges such as Binance, FTX, OKEx and Gemini.

Read More: ‘Coinbase Effect’ Means Average 91% Token Price Gain in 5 Days, Messari Says

Other digital assets on the CoinDesk 20 are mostly in the red Wednesday. Notable winners as of 20:00 UTC (4:00 p.m. ET): 

Notable losers:

Other markets

Equities:

  • Asia’s Nikkei 225 closed up 0.12%.
  • The FTSE 100 in Europe was higher by 0.91%.
  • The S&P 500 in the United States closed in the green 0.15%.

Commodities:

  • Crude oil (WTI): +0.44% to $59.59/barrel.
  • Gold: -0.39% to $1,738.38/ounce.

Treasurys:

  • The 10-year U.S. Treasury bond yield climbed Wednesday, in the green 1.666%.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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    CoinDesk

    CoinDesk is the leading digital media, events and information services company for the crypto asset and blockchain technology community. Its mandate is to inform, educate and connect the global community as the authoritative daily news provider dedicated to chronicling the space. Founded in May 2013, CoinDesk reaches millions interested in blockchain technology thru its website, social media, newsletters, podcasts and video. CoinDesk created the original reference rate known as the Bitcoin Price Index which is widely sourced in the media including The Wall Street Journal, Financial Times, CNBC and many others on a daily basis.

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