Bitcoin price was roughly flat while ETH and SOL token were up about 5% over past 24 hours
Bitcoin price has fallen following comments from U.S. Fed Chairman Powell, while Ethereum (ETH) has gained more. BTC support levels remain intact, possibly establishing a tight trading range between $55,000 and $60,000. At the time of writing, BTC is changing hands at $57,163.
BTC/USD 4-hour chart | Source: TradingView
Bitcoin price underperforms as ETH and other altcoins rise
Bitcoin price sank after U.S. Federal Reserve Chair Jerome Powell warned Tuesday that the risk of higher inflation has increased, signaling the central bank would consider fastening the reduction of its asset purchase policies that have boosted the markets for risky assets. Powell suggested that monetary policy could tighten faster than expected – potentially a negative for speculative assets, including cryptocurrencies and equities.
Bitcoin’s market capitalization relative to the total crypto market capitalization, or dominance ratio, has declined about 10% over the past two months to the lowest level since September. The decline in BTC’s dominance reflects the recent outperformance of altcoins. Some analysts view the rotation from bitcoin to altcoins as an indicator of investors’ greater appetite for risk.
Recently, the $60,000 resistance level has been a key hurdle for buyers despite oversold readings on the charts. So far, support levels remain intact, which could establish a tight trading range between $55,000-$60,000 into the Asian trading day.
On the other hand, Ether ended the day with its fourth straight day of gains, trading above $4,600. At the time of writing, ETH is changing hands at $4,689.
“Ethereum and ETH-based assets are surging, alongside other DeFi projects like LUNA, RUNE & RLY. Meme coins SHIB & ELON are also enjoying breakouts. Coins with top fundamentals have the highest probability of maintaining prices”, Santiment stated.
In addition to ETH, SOL is also a notable name. The cause is crypto asset management firm Grayscale has launched a Solana trust product for accredited investors via private placement. The product will offer exposure to SOL, the native token used on the Solana blockchain. The launch comes two months after Grayscale rival Osprey Funds launched a Solana trust product.
Most digital assets in the market ended the day higher. The overall cryptocurrency market cap now stands at $2.638 trillion, and Bitcoin’s Dominance rate is 40.9%.
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