Bitcoin recovers to $51,000 ── NVIDIA’s solid financial performance spurs AI token rise
Bitcoin fell to $50,700 on February 21, while Ethereum fell below $2,890 before reversing on February 22.
Some traders cited price action analysis and said the selloff was expected but not indicative of a broader market trend.
Earlier this week, the cryptocurrency (virtual currency) market reached its highest point for several months, then fell slightly, then showed signs of recovery on the 22nd. The move came as traders booked gains and market watchers focused on chipmaker Nvidia’s earnings report as a catalyst for the move.
Bitcoin (BTC) fell to $50,700 late Wednesday, while Ethereum (ETH) saw a slight reversal after falling to just below $2,890. Polygon (MATIC) led losses among major cryptocurrencies, falling 7%, while Cardano (ADA) and XRP (XRP) also fell 5%. Meanwhile, the CoinDesk 20 Index (CD20), a major cryptocurrency benchmark, fell 1.2%.
Markets were depressed ahead of Nvidia’s fourth-quarter earnings report, but the report surpassed expectations and sparked a rebound for the artificial intelligence (AI) token. AI tokens soared last week after OpenAI announced its video generation Sora. The market capitalization of AI tokens exceeded $15 billion (approximately 2.25 trillion yen, equivalent to 1 dollar = 150 yen), and World Coin’s WLD reached an all-time high.
This coincidental price movement resulted in the liquidation of over $200 million (about 30 billion yen) in cryptocurrency futures, of which $150 million (about 22.5 billion yen) was long, meaning it was held on the back of rising prices. no see. It was a bed. As the market recovered after Nvidia’s earnings announcement, short selling (betting on declines) was also affected.
So, some traders, citing analysis of price movements, said the sell-off was expected but not indicative of a broader trend in the market.
“Bitcoin has not repeated the upward momentum observed over the past few days, but the selling is still strong,” Alex Kuptsikevich, market analyst at FxPro, said in an email to CoinDesk. We succeeded in avoiding that.” “Technically, Ethereum’s decline to $2,700 is a correction to this month’s uptrend and is not that surprising. “However, if it falls below this level, there may be concerns about those assets.”
While some market participants are predicting the start of altcoin season, others remain cautious.
Markus Thielen, founder of 10X Research, noted in a report earlier this week that Bitcoin continues to dominate with a 51% market share. Thielen said Bitcoin’s dominance “needs to fall below 45%” for altcoins to thrive.
Bitcoin dominance refers to the ratio of Bitcoin’s market capitalization to the market capitalization of all other cryptocurrency assets. Historically, a decline in dominance signals capital moving into other tokens, which is good for altcoin investors.
｜Translation: CoinDesk JAPAN ｜Editor: Toshihiko Inoue ｜Image: Shutterstock ｜Original article: Cryptocurrency markets recover as Bitcoin recovers above $51,000 and Nvidia’s profits give AI tokens a boost.
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