BTC retreats after $46K rejection

Selina Johansson
Market watchers are split on which direction the BTC market will go next – Photo: Shutterstock

Bitcoin (BTC) retreated after reaching its month-high and getting rejected at $46,000 mark. The oldest cryptocurrency was trading around the $43,000–$44,000 range in morning trading in Europe.

Bitcoin and the rest of the cryptocurrency market got a boost last week after the US jobs reports. The rally continued during the weekend and into the week, and was picking up on Thursday before the US inflation data was released.

The price of the virtual token intially dropped after higher-than-expected inflation figures, but it then went on to reach a month-high of $45,661, according to CoinMarketCap.com. (Here, you can view how the main cryptocurrency reacted to the the US inflation data.)

The week’s price action inspired some shift into bullish mood in the market, with the Crypto Fear and Greed Index now showing market sentiment as ‘neutral’ after weeks of showing the prevailing sentiment was ‘extreme fear’.

With all these various influences at play, market watchers are split on where the market will go next.

On-chain analysis firm Santiment tweeted: “As crypto markets have wobbled & been shaky Thursday, we’ve seen that bitcoin’s average funding rates on exchanges point to traders longing.

“Meanwhile, altcoin funding rates are pointing to traders shorting. Typically, prices move in the OPPOSITE direction of these rates.”

Quote of the day: Drake bets on Super Bowl in BTC

Cryptocurrency is expected to have a prominent role during this weekend’s Super Bowl, which attracted 96.4 million viewers last year. Centralised cryptocurrency exchange FTX is set to air a commercial during the event, and has even said it plans to give “some bitcoins away” during the match.

“All bets are in on the family,” wrote Canadian musician Drake in an Instagram post, where he shows a screenshot of the bet he made using bitcoin on Los Angeles American football team the Rams to win this Sunday’s Super Bowl.

Screenshot of Instagram post from DrakeScreenshot of Instagram post from Drake

Other crypto news

Non-fungible tokens (NFTs) have gathered a great deal of interest, which became exponential last year – see here for Capital.com’s visualisation of the 2021 NFT popularity boom.

The popularity of Google NFT searches has now caught up – and in some cases, even surpassed – searches for cryptocurrency, however to date, NFTs are making only around 1% of the entire $2trn cryptocurrency market capitalisation, according to Messari.

The most popular sub-sector is the Avatar NFT.

Top cryptocurrency coins by market capitalisation

As of 11:30 GMT: 

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