The cryptocurrency market remains buoyant as it consolidates gains from a record-breaking start to the year. With a total market capitalisation of $3.61 trillion, up 0.16% in the past 24 hours, the sector is showcasing resilience in the face of both macroeconomic and regulatory developments.
Bitcoin Steadies Above $105,000
Bitcoin (BTC), the bellwether of the crypto market, is trading at $105,148, maintaining its position above the critical $105,000 resistance level. This follows an all-time high of $109,356 on January 20th. Analysts attribute the stability to robust institutional inflows and a favourable macroeconomic backdrop, including easing inflation and dovish commentary from the Federal Reserve.
Key technical indicators reveal room for further growth:
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Bitcoin’s Mayer Multiple currently stands at 1.37, suggesting the asset is not yet overbought.
- Support levels remain strong at $100,000, with resistance near $105,500.
Projections for Bitcoin’s trajectory remain bullish:
- Standard Chartered predicts a rise to $200,000 by year-end.
- VanEck forecasts a peak at $180,000, with a potential summer retracement of 30%.
Ethereum Eyes $3,400
Ethereum (ETH) is trading at $3,340, up 0.72% in the past day, with projections indicating a steady climb. Analysts expect Ethereum could breach $10,000 by the close of 2025, bolstered by increasing adoption of its blockchain for decentralised finance (DeFi) and AI-driven applications.
Altcoins: Biggest Movers and Shakers
The altcoin market is witnessing substantial gains, with several tokens outperforming the broader market:
- Chainlink (LINK) surged 3.59% in 24 hours, trading at $26.12, on news of expanded integrations with traditional finance (TradFi) institutions.
- Alpha Finance (ALPHA) skyrocketed 1,014% to $0.045, marking the largest single-day gain among major tokens, driven by speculation surrounding a forthcoming product launch.
- Jupiter (JUP) climbed 20.79% to $1.21, buoyed by increased trading volume and rumours of a partnership with a prominent gaming platform.
Meanwhile, memecoins also staged a strong rally:
- Dogecoin (DOGE) rose 0.6% to $0.3539, with renewed interest following social media endorsements.
- Shiba Inu (SHIB) added 0.66%, trading at $0.00001996, as developers unveiled plans for a new layer-2 scaling solution.
Trending on Decentralised Exchanges
In the decentralised finance (DeFi) arena, the following pairs saw remarkable activity:
- MARIO/SOL surged over 9,999% on DexScan, indicating speculative frenzy.
- SocialFi/SOL spiked 624%, underscoring the growing interest in social tokens tied to blockchain-based communities.
Key Laggards
Not all tokens shared in the rally:
- Tether (USDT) remained flat at $0.9998, reflecting its role as a stabilising force in the market.
- Litecoin (LTC) posted modest gains of 0.4%, underperforming relative to its peers.
Market Sentiment and Outlook
The Fear and Greed Index rose to 60, reflecting a shift into “Greed” territory, as traders grow increasingly confident about the market’s direction. Institutional interest continues to underwrite the market, with Bitcoin and Ethereum attracting significant capital inflows.
Despite the bullish momentum, risks remain. Potential regulatory scrutiny, geopolitical tensions, and profit-taking at current levels could temper gains in the short term. However, with strong fundamentals and technical indicators pointing upward, the long-term outlook remains positive.
As the market consolidates, all eyes are on Bitcoin’s next move above $105,000 and Ethereum’s potential to reclaim the $3,400 threshold, which could set the stage for further gains in the coming months.