Bitcoin slides after reaching highest level since August on Sunday

Quick Take

  • Bitcoin was trading around $23,200, down about 2.1%. Ether also dropped, falling 2.2% to $1,500.
  • Altcoins traded down across the board, with Polygon’s MATIC declining over 6%.
  • Crypto stocks were mixed, with Silvergate trading up 12% and Block falling 0.9%.

Crypto prices slid alongside the S&P 500 and the Nasdaq, while the Dow traded in the green.

Bitcoin fell 2.1% to $23,220 around 10:15 a.m. EST after reaching its highest level since August, according to TradingView data.

 

BTCUSD chart by TradingView

Ether declined 1.4% to around $1,592. BNB fell 2.8%, while Cardano's ADA was also down 1.2%. Polygon's MATIC declined by over 6% in the past 24 hours after rising last week.

Dog-themed memecoins also declined, with dogecoin and shiba inu down 3.2% and 2.5%, respectively. 

Bitcoin is "on track for its best January performance in a decade, indicative of a sharp reversal in bearish sentiment that negatively impacted prices for much of 2022," according to crypto economist Ryan Shea of Trakx.

Key to sustaining this bullish trend, he said, will be the Federal Open Market Committee (FOMC) meeting this Wednesday, with the Fed expected to raise rates by 25 basis points, "the smallest hike this tightening cycle." 

If confirmed, Shea said "this would further support the 'soft-landing' narrative which has been gaining traction in both tradfi and crypto markets over recent weeks."

However, if Fed chair Jerome Powell's comments indicate that there are more than two 25-basis point hikes upcoming, this could mean that a "more sustained reversal in crypto prices is on the cards," he said.

Crypto stocks

Silvergate shares soared 12% to around $15 by 10:00 a.m., according to Nasdaq data, while most other crypto stocks fell slightly.

Jack Dorsey's Block shed 0.9% to trade around $83, while MicroStrategy dropped 0.5% and Coinbase dropped 1.5%.

Michael Saylor's MSTR fell 0.1%.


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