Amid cryptocurrency winter, Bitcoin (BTC) raised above $23,000 and the cryptocurrency market saw a significant sell-off in the last week which liquidated $183.99 million, as per Coinglass, a cryptocurrency trading platform. BTC is trading at $23,218. “The digital asset industry is moving towards decentralisation and self-custody to create a safety net around user funds. We are witnessing a paradigm shift in the way retail and institutional users are storing their digital assets and users are aggressively adopting self-custody storage solutions,” Mahin Gupta, founder, Liminal, a digital wallet infrastructre platform told FE Blockchain.
Meanwhile, as per the data from coinmarketcap, BTC is up by 37% this month and the second largest cryptocurrency Ethereum has surged by 34%. However, Solana (SOL) has witnessed sharp correction and is now among the top 10 digital assets, Coinmarketcap noted. “The cryptocurrency market is expected to remain stable as investors are in a wait-and-watch mode for the next Fed meeting in February,” Shivam Thakral, CEO, BuyUcoin, a cryptocurrency exchange noted.
Furthermore, 90.29% of these liquidations involved traders who had held long positions in the market, Coinglass noted. As per market observers, Bitcoin reacts better when it comes to Bitcoin halving which occurs every four years and is due in May 2024. “Fed has sent out feelers that it may end its hawkish stance but the outcome of the meeting will decide the market mood in the coming weeks,” Gupta added.