After a lull, the cryptocurrency market finally saw a bright day as it traded higher on Monday. The largest digital asset in the world, Bitcoin, rose 1.21% and crossed $17,000. “This is largely due to the positive outcome of the US jobs report which claimed the lowest unemployment rate dating back to pre-pandemic levels. The positive jobs data suggests that Federal Reserve may not go for an aggressive rate hike in its next meeting in February which may prove beneficial for the global cryptocurrency market,” Shivam Thakral, CEO of BuyUcoin, a cryptocurrency exchange told FE Blockchain.
Meanwhile, it appears that it has been good for another cryptocurrency as well. According to data by Coinmarketcap, a price-tracking website for digital assets, Solana increased by 13.31%. Additionally, USD Coin, Dogecoin, Cardano, Polygon, Binance, Tron, Litecoin, and Polkadot traded higher. XRP, however, traded at a loss.
Caption: Market capitalisation of cryptocurrencies. Source: Coinmarketcap
It is to be further noted that the traditional financial markets (the US and European stocks) reacted sharply to the development as the stocks rallied owing to the signs of easing inflation. “Bitcoin broke the major resistance level of $16,800 and it could rise further toward the next hurdle which is at $18,000 resistance. It will be interesting to see how Fed reacts in its next meeting in February, which will decide the future course of the financial and cryptocurrency market,” Dhruvil Shah, senior vice president, technology, Liminal, a digital wallet infrastructure platform, noted.
Meanwhile, the price of Bitcoin hovered around $322 billion, with a dominance of about 40.09%, an increase of 0.01% over the day, according to Coinmarketcap.
The market capitalisation of all cryptocurrencies traded higher but barely held $800 billion, up 0.68% in the previous day. Decentralised finance’s (DeFi) total 24-hour volume was $1.29 billion, or 7.15 percent of the entire cryptocurrency market. Stablecoin volume as a whole is currently $16.30 billion, or 90.14% of the 24-hour volume of the entire cryptocurrency market. “The crypto sector needs immediate support from the regulators to create a business-friendly environment that will enable the growth of blockchain companies in India, “Swapnil Pawar, founder, Newrl, blockchain platform, added.
Furthermore, Industry experts noted that a lot depends on how US Federal Reserve reacts in its next meeting scheduled in February, which will decide the future course of the cryptocurrency market.