Crypto Price Today: Bitcoin below $28k; Litecoin, Polygon, Dogecoin shed up to 5%

Top crypto tokens were trading lower on Tuesday. The weakness was led by Bitcoin and some of the key altcoins as the banking crisis in the US eased further. Also, weakness persisted over the muted volume and withdrawals. Traders will be keenly looking at US inflation data on Wednesday for the monetary rate path.

Bitcoin continued to fall and dropped another 2 per cent in the early trading hours on Tuesday as the largest crypto token slipped below $28,000-mark to hold near $27,500. Its largest peer, Ethereum, also shed a per cent down to breached $1,850-levels. Pressure on altcoins was severe.

"Crypto markets have been under selling pressure in the last 24 hours. Bullish sentiments seem to have slightly reduced as the crypto and fear index falls for the second consecutive day, standing in the neutral zone with a score of 51. All major cryptos seem to be trading in red ahead of the consumer price index report as investors move away from ‘risk-on’ assets, said Parth Chaturvedi, Investments Lead, CoinSwitch Ventures.

"Bitcoin dropped over a per cent, hovering near the $27,600 range. The Bitcoin network has been experiencing congestion for a few days due to the emergence of Ordinals—Bitcoin NFTs, and BRC-20 meme tokens. ETH is also down, trading in the $1,800 range. Hyped PEPE has seen major selling pressure after being listed on Binance, leading to a 25 per cent fall in its prices," he added.

Barring the US Dollar pegged USD coin, all other top crypto tokens were trading with big cuts on Monday. Litecoin plunged about 5 per cent, followed by a 4 per cent decline in Polygon and Dogecoin each. Avalanche, Shiba Inu, XRP and Solana dropped 3 per cent each.

The global cryptocurrency market cap was trading significantly lower, hovering at $1.14 trillion-mark as it dropped as much as 2 per cent in the last 24 hours. However, the total trading volumes jumped more than 36 per cent to $43.05 billion.

The crypto market witnessed new weekly lows as Bitcoin slipped below the $28,000 market on Monday wiping $60 billion from the crypto market, said Shivam Thakral, CEO of BuyUcoin.

"Bitcoin's decline pulled down other altcoins as well with Ethereum, XRP, Solana, and Polkadot witnessing a similar downward trend. The latest developments at Binance over the weekend may have spooked investors resulting in the latest dip in prices. The market is expected to remain choppy this week owing to the fluid macroeconomic factors," he said.

Tech View by WazirX Trade Desk
Cosmos(ATOM) presents itself as a project that tackles some of the most challenging issues that the blockchain sector encounters. Its objective is to provide a solution to proof-of-work protocols, which are known to be sluggish, expensive and unscalable such as the ones employed by Bitcoin. Cosmos intends to accomplish this by introducing a network of interconnected blockchains.
 

ATOM has been closing in red for a couple of weeks. On the weekly time-frame, the trend has just touched its support levels. We could expect a bounce back from this level and it could be a good time to take a buy position. An immediate resistance is expected at $11.8 and the next support level is expected at $9.4

(Views and recommendations given in this section are the analysts' own and do not represent those of Business Today. Please consult your financial adviser before taking any position in the asset/s mentioned.)