Bitcoin surged to $88,000 on Tuesday. The cryptocurrency rose over 1%, maintaining a steady rise that began on Sunday.
Despite the weak state of the US dollar and market volatility, the digital asset refused to give up so easily. It maintained a high head amongst other assets. Its rally coincided with a sharp decline in the US dollar, which has hit a three-year low in the midst of interference on Federal reserve by the political bodies.
The Market Dynamics and Liquidations of Bitcoin and others
However, some famous cryptocurrencies like XRP, Ethereum (ETH), Solana (SOL), and Cardano (ADA) are experiencing a decline of up to 3%. According to information from CoinGecko, this shows a notable sign of profit-taking. Additionally, the surge emphasizes Bitcoin’s place as a recognized strong digital asset during phases of economic crisis globally.
Also, according to data from Coinglass, for the past 24 hours, over $97 million in Bitcoin short positions were liquidated. The data, as mentioned earlier, has contributed to the cryptocurrency’s upward momentum. The overall liquidations in all cryptocurrencies suddenly reached $180 million. Moreover, data shows that Ethereum (ETH) shorts account for over $26 million, out of Total liquidations across all cryptocurrencies.
Undoubtedly, it’s so breathtaking how mid-cap tokens like KAS and POL had gains, skyrocketing by 9%, despite the lack of immediate catalysts.
Political Tumult Leading to Dollar Weakness
The interference in the Federal Reserve by the political bodies has caused a tumult, leading to the weakness of the US Dollar. The U.S. President, on his Truth Social, wrote that;
“Powell’s termination cannot come fast enough.
However, this indeed augmented Donald Trump’s criticism of the Fed Chairman. Donald Trump has made a dynamic move, pressuring the central bank to cut interest rates. This has triggered concern about Fed Chairman Powell’s independence. As confirmed by the White House economic advisor, in the person of Kevin Hassett, the administration is reviewing the legality of removing Fed Powell. This whole scenario has brought about notable market volatility, U.S. Dollar Index also decreased over 1% to levels last seen as of March 2022.
Facts To Know
State of Ethereum: Ethereum is in a former “buy zone” as it trades below the lower MVRV Price Band.
Ethereum is in a former “buy zone” as Ethereum trades below the bottommost MVRV Price Band. A metric that has previously signaled powerful buying opportunities. Analyst Ali Martinez said
While investors are waiting for a decisive breakout in global economic pressures, Eth trades with a consolidation between $1,550-$1,630, critical support at $1,500, and resistance at $1,700. On April 21,
State of XRP: XRP experienced an escape, surging at 4.3% within two hours, breaking through former resistance at $2.09.
