Bitcoin price nosedives below $40,000 on bloody Monday, BTC price recovery likely on the horizon
Bitcoin price hit a low of $39,400 on Monday after a market-wide bloodbath ushered in a correction in cryptocurrencies with a large market capitalization. BTC made a comeback above the psychological level of $40,000 on Tuesday, and on-chain metrics are showing signs of a further recovery in the asset.
Bitcoin price dropped to a $39,400 low on January 22 as Grayscale’s GBTC noted a $640 million outflow. BTC ETF outflows picked up pace on Monday, acting as one of the key drivers for Bitcoin price decline.
-638416041243087560.png)
Cosmos validators reject proposal to reduce token inflation rate to 0%
A Cosmos contributor proposal to reduce the minimum net supply of tokens to zero was rejected by the community in a close vote, resulting in the status quo being maintained. This is because, generally, a higher inflation rate is seen as a way to incentivize miners, making the network more secure by increasing the cost of a potential attack.
Cosmos proposal 868, introduced by StakeLabs in November last year, was voted out by the community, which decided not to move forward with the suggested changes. The proposal was aimed at reducing the minimum set inflation rate to 0% from the current 7%.
Ethereum traders realize nearly $33 million in losses as overheated futures market cools
Ethereum price dipped nearly 7% in the past day as the crypto market corrected on Monday. Bitcoin led the decline by dropping below $40,000, a psychologically important level, for the first time since December 3.
ETH price, which is correcting to the lowest level in two weeks, could be bottoming out as market participants’ sentiment improves alongside a decline in the altcoin’s funding rate. Ethereum’s Network Realized Profit/ Loss (NRPL) metric indicates that ETH traders suffered $32.73 million in losses on Monday. This marks the first time Ethereum traders realized a loss since October 13.
-638416045675896310.png)
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Chainlink social dominance hits six-month peak as LINK extends gains
-637336005550289133_XtraSmall.jpg)
Chainlink social dominance surged to a six-month peak on Friday as LINK holders increased their activity. LINK traders started taking profits, on-chain data trackers show. LINK price added 6% on Friday, extending its gains from mid-week.
Binance helps Taiwan crack a virtual asset money laundering case, BNB sustains above $570
Binance’s Financial Crimes Compliance (FCC) department joined forces with Taiwan’s Ministry of Justice and helped resolve a case of money laundering worth NT$200 million, or $6.2 million.
Bitcoin Weekly Forecast: Is BTC out of the woods? Premium
Bitcoin price shows signs of continuing its uptrend, providing a buying opportunity between $64,580 to $63,095. On-chain metrics forecast a bullish outlook for BTC ahead. If BTC clears $70,000, the chances of resuming the uptrend would skyrocket.
XRP trades steady at $0.50 as Ripple shares plan to expand services in Africa
Ripple hovers close to $0.51 on Friday, above the psychologically important $0.50 level, as traders await the court ruling of the lawsuit against the US Securities and Exchange Commission and amid new commitments from the firm to expand its services in Africa.
Bitcoin: Is BTC out of the woods? Premium
Bitcoin (BTC) price action in the past two days has confirmed the resumption of the bull run. However, BTC needs to clear a few key hurdles before investors can go all-in.