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Bitcoin (BTC) bounced back from its largest-ever two-day loss since March 2020, with the price going as high as $51,000 on Feb.24.
BTC is essentially trading between the support level of $45,300 and resistance at $51,600. Bitcoin also set a record trading range of $10.877 from the opening price on Feb. 22.
Source: BTCUSD 24Hr Chart CoinBase
Bitcoin was trading at $50,505 at 12pm GMT according to data from CoinMarketCap showing nearly a 1% growth in 24hrs. Trading volumes are down 37.31% from 24 hrs ago to a notional volume of $54.54 billion. The total market capitalization of Bitcoin has also dipped below the much-celebrated $1 trillion mark to $934.78 billion.
In an extension of Bitcoin’s influence on the traditional equities markets, a Wedbush analyst stated that Tesla shares are now closely linked to BTC after the company purchased $1.5 billion worth of BTC early in February. According to their estimation, this investment has already netted $1 billion in profit, on paper of course.
Currently, institutional investors including MicroStrategy and Square are buying the dip indicating the bullish sentiment that prevails in the market.
BTC Price Recovery Hasn’t Translated to Ethereum
Historically, it’s been evident that Ethereum’s (ETH) price has a high correlation with Bitcoin due to the market sentiment that prevails. Although, after the flash crash of crypto assets on Feb. 22 and 23, the price of Ethereum hasn’t recovered as smoothly.
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ETH is trading around the $1,600 range at press time and is down 3.7% in the last 24 hours.
Source: ETHUSD 24hr Chart Coinbase
The slow price recovery could be due to two major reasons. Firstly, the high gas fees that have plagued Ethereum due to its scalability issues that the ETH 2.0 roadmap proposes to solve. Secondly, the rising prominence of the Binance Smart Chain (BSC) as competition with lower gas fees and a faster network.
However, Ethereum’s position as the second most prominent crypto asset is currently cemented due to a large developer base and its huge market capitalization that is nearly five times higher than that of Binance Coin (BNB).
Due to the rise of BSC, BNB has rapidly grown to become the third-largest cryptocurrency by market cap leapfrogging Tether (USDT), Cardano (ADA), Polkadot (DOT), and Ripple (XRP) in a span of two weeks.
