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Crypto news: Bitcoin weathers taper, Shiba crashes out of top 10

By Daniela Ešnerová


Updated

Representative image of an ether token wired into a computer circuit
Bitcoin and Ethereum seem to have shaken off the Fed’s taper announcement – Photo: Shutterstock

Bitcoin appears to have weathered the US Federal Reserve’s much-anticipated stimulus tapering move today, holding above its key support level of $60,000.

The flagship cryptocurrency dipped on the Fed’s announcement that it will start phasing out its $120bn-a-month (£88.9bn) asset-purchase programme that was put in place to help the economy ride out the coronavirus crisis. The policy, known as quantitative easing (QE), pumped trillions of dollars into the financial system and had helped fuel rallies across asset classes including cryptocurrencies. 

According to a study published in the International Journal of Economics and Financial Issues, QE has had “a significant impact on the two most popular cryptocurrencies, bitcoin and ethereum”. Additionally, it has “played an important role in the boom of bitcoin and ethereum, and the boom of them might lead to the frenzied market of other cryptocurrencies,” added the study. 

Widely expected, but feared by some

While the taper announcement was widely expected, and therefore possibly priced into assets before the fact, a possible ending to QE, which had such an impact on the boom in cryptocurrencies, was feared by some crypto traders and market watchers. 

Bitcoin first lost 5% following the announcement, according to CoinDesk, but it was back trading in $61,000 to $62,000 area around noon London time. 

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Down and out of the top 10

Shiba Inu (SHIB), on the other hand, was down 14%, and fell out of the top 10 cryptocurrencies by market capitalisation. SHIB’s price suffered after it failed to be listed on a cryptocurrency exchange, Kraken. The company instinuated in a Twitter post on Monday, that the meme-coin would be listed for trading on its platform, if the tweet would get 2,000 likes by Tuesday. The tweet, which now has 80,400 likes, comfortably surpassed the requirement within the deadline.

However, the exchange seemed to back out of the listing, when it said in the same Twitter thread on Tuesday: “There’s more work for us to do as we move through our listing review process.”

XRP/USD

0.58 Price
-8.930% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168

ETH/USD

3,414.15 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

BCH/USD

377.90 Price
-0.080% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 2.50

DOGE/USD

0.12 Price
-3.250% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.0012872

Other crypto news  

Craig Wright, the Australian computer scientist and early crypto enthusiast, who claims to be pseudonymous Satoshi Nakamoto, the inventor of bitcoin, will testify in Ira Kleiman v Craig Wright civil trial later today. Wright is being sued by Ira Klein, who claims that Wright acted together with his late brother David Klein as business partners, for a share of 1.1 million bitcoins. Wright has repeatadly failed to prove that he was Nakamoto.

Roundup of the biggest coins by market capitalisation

  • bitcoin was down 1.97% to $61,667.91 over the last 24 hours, according to CoinMarketCap
  • ether slid 0.68% to $4,527.04
  • binance coin added 2.05% to $559.53

Winners and losers

  • Shiba Inu’s SHIB was down 14.19% over the past 24 hours, and sunk to 11th place of digital tokens by market capitalisation 
  • Solana’s SOL, on the other hand, continued its record-setting rally, adding 5.23% to $241.53

    Read more: Solana (SOL) price prediction: is it a SOLid investment?

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