Crypto market remains volatile as Bitcoin dips below $25,000, recovers swiftly

Crypto market overview: In the last 24 hours, Bitcoin briefly lost its crucial support at $25,000 for the first time in almost three months. However, it recovered over $25,000 within a few hours. For BTC to not enter panic mode, $24,500 support has to be maintained; a level above which BTC has trading for almost 6 months now. ETH too, slid past its support at $1,600 and is currently trading around $1,550. 

The Crypto Fear and Greed Index also fell drastically in the fear zone to reach the mark of 30 which is the lowest since January 2023. 

Crypto Fear and Greed Index | Image credit: Alternative.me

While talking to Republic about the crypto market movement, Shubham Hudda, Senior Manager, CoinSwitch Markets Desk said, “While a major catalyst for SOL’s sell-off still remains the Wednesday expectation of FTX unlocks, it is already down around 50 per cent from its recent high in July. Additionally, given that a majority of the SOL is time-locked for FTX, we could very well see a ‘sell the rumour, buy the news’ event playing out from tomorrow.”

Edul Patel, Co-Founder & CEO, Mudrex said, “The crypto market quickly rebounded, consolidating at a value exceeding $1.2 trillion as it stabilised. This drop of more than 2 per cent in Bitcoin's price within the past 24 hours may be a response to the potential selling pressure stemming from the bankrupt exchange FTX. Meanwhile, Ethereum has maintained a trading price above $1,540.”

Highlighting the impacts of FTX liquidations due for this week, Shivam Thakral, CEO of BuyUcoin, said, “The FTX liquidations expected this week may add to the existing crypto market woes. Users can expect high market volatility in the coming days.”

A few events that investors are expected to closely monitor include the US CPI Data slated for tomorrow, alongside the US Producer Price Index (PPI) data and US retail sales data which are expected to be published on Thursday.

Prices listed were last checked at 9:30 am today according to Coinmarketcap.com

Crypto market in last 24 hours

In the last 24 hours, Bitcoin has gained 0.8 per cent after briefly falling to the mark of $25,000. The sudden sell-off in Bitcoin pushed the entire crypto market towards a selling rally, however, within a few hours, some of the tokens were able to recover the losses. ETH lost 1.39 per cent yesterday while XRP lost 3.35 per cent. 

On the other hand, Dogecoin gained 0.74 per cent, Bitcoin Cash gained 1.19 per cent, Lido gained 1.5 per cent, and Optimism surged by 5.84 per cent. Solana continued to bleed, recording another 0.6 per cent decline in its prices and currently trading at $18.20.