Bitcoin Holds Steady Below Record High, Altcoins Retreat
Bitcoin remained stable on Wednesday, just below a record high achieved earlier in the week, while major altcoins saw a decline in prices amidst escalating tensions between Russia and Ukraine. The overall sentiment towards cryptocurrencies stayed positive, driven by the anticipation of more favorable regulations in the U.S.
Bitcoin Price Update
- Bitcoin price rose 0.6% to $92,074.4 by 00:13 ET (05:13 GMT).
- The cryptocurrency had reached a record high of nearly $94,000 earlier in the day.
Factors Supporting Bitcoin’s Performance
Bitcoin’s recent surge can be attributed to various factors:
- Trump Trade: The cryptocurrency market saw significant gains following Donald Trump’s victory in the 2024 presidential election. Trump’s promises of crypto-friendly regulations raised hopes of increased institutional capital inflows into the market.
- MicroStrategy’s Influence: MicroStrategy, the largest corporate holder of Bitcoin, purchased a record $4.6 billion worth of the coin in the past week. The company’s continued buying spree and plans to raise more debt for further purchases have bolstered investor confidence.
Market Volatility and Altcoin Performance
While Bitcoin maintained its strength, altcoins faced challenges:
- Russia-Ukraine Tensions: Increased geopolitical tensions between Russia and Ukraine impacted risk appetite across markets, leading to a decline in broader crypto assets.
- Profit-Taking: Following substantial gains in recent weeks, altcoins experienced profit-taking, with some currencies like Ethereum, XRP, and Litecoin seeing price declines.
Current Altcoin Prices
- Ethereum fell by 0.8% to $3,110.35.
- XRP, Litecoin, and Solana dropped between 0.7% and 2%.
- Shiba Inu rose by 5% but with low trading volumes.
Overall, market dynamics remain influenced by geopolitical events and regulatory developments, shaping the future trajectory of cryptocurrencies.
Stay tuned for further updates on the crypto market!