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Crypto news: BTC retreats after $46K rejection

By Daniela Ešnerová


Updated

Bitcoin (BTC) coin and dice, including those showing arrows pointing to different directions.
Market watchers are split on which direction the BTC market will go next – Photo: Shutterstock

Bitcoin (BTC) retreated after reaching its month-high and getting rejected at $46,000 mark. The oldest cryptocurrency was trading around the $43,000–$44,000 range in morning trading in Europe.

Bitcoin and the rest of the cryptocurrency market got a boost last week after the US jobs reports. The rally continued during the weekend and into the week, and was picking up on Thursday before the US inflation data was released.

The price of the virtual token intially dropped after higher-than-expected inflation figures, but it then went on to reach a month-high of $45,661, according to CoinMarketCap.com. (Here, you can view how the main cryptocurrency reacted to the the US inflation data.)

The week’s price action inspired some shift into bullish mood in the market, with the Crypto Fear and Greed Index now showing market sentiment as 'neutral' after weeks of showing the prevailing sentiment was ‘extreme fear’.

With all these various influences at play, market watchers are split on where the market will go next.

On-chain analysis firm Santiment tweeted: “As crypto markets have wobbled & been shaky Thursday, we’ve seen that bitcoin’s average funding rates on exchanges point to traders longing.

“Meanwhile, altcoin funding rates are pointing to traders shorting. Typically, prices move in the OPPOSITE direction of these rates.”

XRP/USD

0.60 Price
+3.420% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168

DOGE/USD

0.13 Price
+4.320% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.0012872

ETH/USD

3,502.08 Price
-0.160% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00

BTC/USD

66,707.80 Price
-0.490% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00

Quote of the day: Drake bets on Super Bowl in BTC

Cryptocurrency is expected to have a prominent role during this weekend’s Super Bowl, which attracted 96.4 million viewers last year. Centralised cryptocurrency exchange FTX is set to air a commercial during the event, and has even said it plans to give “some bitcoins away” during the match.

“All bets are in on the family,” wrote Canadian musician Drake in an Instagram post, where he shows a screenshot of the bet he made using bitcoin on Los Angeles American football team the Rams to win this Sunday’s Super Bowl.

What is your sentiment on BCH/USD?

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Screenshot of Instagram post from DrakeScreenshot of Instagram post from Drake

Other crypto news

Non-fungible tokens (NFTs) have gathered a great deal of interest, which became exponential last year – see here for Capital.com’s visualisation of the 2021 NFT popularity boom.

The popularity of Google NFT searches has now caught up – and in some cases, even surpassed – searches for cryptocurrency, however to date, NFTs are making only around 1% of the entire $2trn cryptocurrency market capitalisation, according to Messari.

The most popular sub-sector is the Avatar NFT.

Top cryptocurrency coins by market capitalisation

As of 11:30 GMT: 

Winners and losers

Markets in this article

BNB/USD
Binance Coin / USD
598.83 USD
-1.92 -0.320%
BNB/USD
Binance Coin / USD
598.83 USD
-1.92 -0.320%
BTC/USD
Bitcoin / USD
66707.80 USD
-328.05 -0.490%
ETH/USD
Ethereum / USD
3502.08 USD
-5.54 -0.160%
GALA/USD
GALA/USD
0.02604 USD
0.00025 +0.980%

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Related reading

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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