Bitcoin Holds Steady Above $42,000 as Altcoins Experience Minor Declines: Crypto Market Update
US Interest Rate Decision Dampens Market Sentiment, Bitcoin Sees Decline
On Monday, February 5th, Bitcoin experienced a slight decline of 1.26 percent, according to Gadgets360’s crypto price tracker, settling at $42,458 (approximately Rs. 35.2 lakh) at the time of reporting. Despite a weekend increase of $438 (roughly Rs. 36,367), the market sentiment took a hit following the recent announcement of no interest rate cuts expected in March in the US, leading to a downturn in Bitcoin’s value.
Meanwhile, Ether also saw a marginal loss of 0.42 percent on Monday, bringing its value to $2,290 (approximately Rs. 1.90 lakh). Despite this dip, Ether’s value has seen a modest increase of $32 (roughly Rs. 2,655) over the past 24 hours.
“Positive factors like the halving make the outlook for BTC positive. Ether is below key moving averages, but developments like the Dencun upgrade and speculation on an ETH spot ETF approval gives positive sentiments,” remarked the CoinDCX Research Team to Gadgets360, expressing optimism for the near-term trajectory of the market.
Tether, Solana, Ripple, Cardano, Avalanche, and Dogecoin are some of the other altcoins trading in losses. Polygon, Shiba Inu, Litecoin, Bitcoin Cash, Leo, Uniswap, and Cosmos also recorded losses.
The overall market cap of the crypto sector dropped by 0.53 percent in the last 24 hours. The sector valuation currently stands at $1.64 trillion (roughly Rs. 1,36,15,640 crore) as per CoinMarketCap.
“An outlier for recent positive price performance has been LINK (+0.6 percent); Friday witnessed a surge for LINK to its 22-month high. Additionally, after META’s overall positive quarterly earnings, AI tokens including RNDR (-7.9 percent), FET (-7.1 percent) and AKT (-1.1 percent) saw short-lived gains before undergoing correction,” Parth Chaturvedi, Investments Lead, CoinSwitch Ventures.
Analysts predict that soon Bitcoin, and subsequently the overall market will see a resurrection that could show stability for some time for several assets. The process of Bitcoin halving, which occurs every four years and is less than 70 days away, has historically pushed Bitcoin and the total market cap to new highs.
