BTC at $42.6K: Hits, Misses, and a Blowout NFT Auction

Crypto bellwether Bitcoin (BTC-USD) finally took a breather this week following a mega 146% rally over the past year. BTC has corrected by nearly 2.6% over the past five sessions after briefly hovering above the $44,000 mark earlier this month.

Similarly, other major cryptocurrencies, including Ethereum (ETH-USD), and Ripple (XRP-USD), have corrected by nearly 3.4%, and 5.6% respectively over the past five days. On the other hand, Solana (SOL-USD) has trended higher by nearly 8.2% during this period. The Solana token is one of the biggest gainers of 2023, with a mammoth 600% price gain.

The drop in BTC comes after the U.S. Fed hinted at three possible rate decreases in 2024 and China took steps to prop up its sagging economy. Additionally, there are early signs of tensions in the Middle East subsiding.

Heading into 2024, J.P. Morgan has maintained caution regarding the crypto space, according to Coindesk. Still, BTC should do well ahead of halving, and ETH could continue to rise as the network improves transaction speeds with proto-dank sharding.

While the blowup at FTX is in the rearview mirror now, sporadic tremors continue. This week, SafeMoon filed for Chapter 7 bankruptcy following the arrest of its executives last month. Top names at the company, including its CEO, are accused of money laundering, securities fraud, and wire fraud conspiracy. Add to this, crypto exchange Ankex has wound down amid tough market conditions. IMF Chief Kristalina Georgieva has called for the regulation of cryptocurrencies owing to potential risks to financial stability.

Meanwhile, Sotheby’s just sold an NFT of a pixelated avocado for over $100,000. The auction house sold a total of three images from the BitcoinShrooms collection for 5 times the initial estimates. As the mania continues, if Bitcoin sustains above $41,000 levels, one could expect the rally to resume over the coming periods.

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