The cryptocurrency market experienced a mixed performance on Monday following a weekend selloff. Despite the recent volatility, there remains a bullish sentiment surrounding cryptocurrencies, particularly Bitcoin. Bitcoin’s price has seen a slight decrease of less than 1% over the past 24 hours, hovering around $67,000. This decline comes after a selloff over the weekend that saw Bitcoin dip below $65,000, following its recent record high near $74,000.
Analysts view the recent pullback as a natural correction within a larger bull market trend. Profit-taking by investors after periods of significant price gains is common, and many in the market believe that last week’s dip was merely a pause in the ongoing rally driven by factors such as the anticipation of the halving event and increased interest from institutional investors through Bitcoin ETFs.
The approval of Bitcoin exchange-traded funds (ETFs) in the U.S. has resulted in billions of dollars flowing into the market, bolstering prices. Additionally, the upcoming halving event in April, which will reduce the issuance of new Bitcoin, is expected to further support prices by limiting token supply amid rising demand.
Positive sentiment in broader financial markets, with indices like the S&P 500 and Nasdaq reaching near-record levels, has also contributed to the resilience of cryptocurrencies. However, the market remains susceptible to external factors, including the Federal Reserve’s monetary policy decision scheduled for Wednesday, which could influence both traditional stocks and digital assets.
While Bitcoin remains the focal point, other cryptocurrencies such as Ether have also experienced fluctuations, with Ether trading down 2% at $3,500 after reaching above $4,000 last week. Altcoins, including Cardano and Polygon, have seen declines, while memecoins like Dogecoin and Shiba Inu have shown mixed performance. Overall, the cryptocurrency market continues to attract attention and investment despite short-term fluctuations.
