Cryptocurrency News

Crypto Market Recovers From Yesterday’s Sell-Off, Bitcoin and Ethereum Encounter Robust Support

By January 25, 2022 No Comments

Key takeaways: 

  • The cryptocurrency market capitalization recorded an 8% gain in the last 24 hours
  • Bitcoin encountered strong support at the $33,000 level and recovered all of its yesterday’s losses within 12 hours
  • Fantom and Pocket Network were the biggest gainers in the crypto top 100, having gained more than 20% in the last 24 hours

The cryptocurrency market has entered a much-anticipated recovery after yesterday’s selloff. Over the course of the last 24 hours, the cumulative value of all digital assets in circulation has increased by more than 8%, which led to virtually all coins in the cryptocurrency top 100 being traded in the green zone.

Bitcoin bounced off the $33,000 bottom and gained 13% within 12 hours

The world’s largest crypto was in free fall since Friday, when the flash crash saw Bitcoin lose over 10% in the span of 12 hours. The bearish momentum carried over to the weekend and into the beginning of this week – on Monday, BTC reached its lowest value in six months, bottoming out at $33,063. Thankfully, Bitcoin encountered robust support at the $33,000 price level and managed to mount a strong, 13% bounce back that pushed its value to pre-weekend levels.

At the time of writing, Bitcoin is changing hands at $36,433, still down 15% from its Friday’s top. Friday’s selloff that plunged the value of Bitcoin to six-month lows was a culmination of several macroeconomic factors. 

For starters, both the stock and crypto market still haven’t shaken off the negative sentiment sparked by the Fed roughly two weeks ago, when it announced an interest rate hike and an end to massive economic stimulus programs designed to ease the effects of the coronavirus pandemic. 

Additionally, the central bank of Russia recently called for a blanket ban on crypto, which would outlaw all crypto-related activities in the third-largest Bitcoin mining country. Prominent Russian tech and political executives have voiced their opposition to the proposed ban and fear it could have a devastating effect on the country’s IT sector.

As the price of Bitcoin neared its cycle low yesterday, a number of blockchain market analysts pointed out that the crypto has entered the “oversold” zone as key market signals, including NVT and IRS, turned green and started indicating that the local bottom has been reached.

Ethereum leads broader altcoin recovery, Fantom and Pocket Network top the largest gainers chart

Ethereum lost over 30% of its value between Friday’s top and Monday’s bottom. Since then, ETH gained over 10% and is currently trading at $2,407, almost exactly 50% removed from its all-time high reached last November.

As the price of the second largest crypto started recovering, other altcoins followed in its tracks. Pocket Network has been the best performing coin in the last 24 hours and managed to break into the cryptocurrency top 100 on the tailwind of 33% gains. 

Ethereum Layer 1 competitor Fantom impressed with 22% gains and is now modestly in the green for the year, despite getting caught in the broader market pullback. Yesterday, Fantom reached a major milestone – it flipped Binance Smart Chain (BSC) in terms of the total value locked (TVL) on its network to become the third-largest decentralized finance (DeFi) ecosystem in crypto. 

The list of other notable gainers in the last 24 hours includes: Avalanche (+13%), Crypto.Com Coin (+10%), FTX Token (+11%), OKB (+14%), and VeChain (+12%).