Federal Reserve Board Governor Waller’s speech, due later on Tuesday, will be in focus. His comments in late November had investors more convinced that the Fed will pivot toward rate cuts.
Investors have priced in a near 80% chance of Fed rate cut in March and expect the central bank to cut the rate in nearly each of the successive meetings this year.
In Tuesday’s trade, Bitcoin did not move much but held near the $42,800 mark, whereas Ethereum was comfortable above $2,500.
“Bitcoin can consolidate at current levels and subsequently retest its key resistance at $44,000 as selling pressure seems to be easing on the daily timeframe. Ethereum, buoyed by calls for its own spot ETF, is holding on to the $2,500 level,” said Vikram Subburaj, CEO of Giottus.Other top crypto tokens were trading lower on Tuesday. Tron, Chainlink, Litecoin, XRP, Cardano and Polygon fell up to 1-2%.
The global cryptocurrency market cap was trading marginally higher, around $1.69 trillion, rising 0.41% in the last 24 hours. The total trading volume increased about 4.41% to $54.02 billion.Bitcoin’s dominance is currently 49.8%, according to CoinMarketCap. BTC volume in the last 24 hours surged 5.7% to $20.82 billion.
Notably, BTC dominance is declining, while ETH dominance is rising, suggesting a rotation of funds from BTC to ETH, said CoinDCX Research Team.
This shift became more prominent after the BTC spot ETF approval, with ETH showing outperformance as the likelihood of an ETH spot ETF approval increased, it said.
Edul Patel, CEO of Mudrex, said, Bitcoin see-sawed quite a bit in the last 24 hours, with a sharp upward trajectory taking it past $43,300, but some quick profit booking bringing it back down to just above $42,600. Overall, the price action in the last 24 hours saw the market sentiment shifting back towards the greed end of the spectrum.”
(With inputs from agencies)
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