The cryptocurrency market has fallen by 4.8% over the past 24 hours as of early morning Eastern time Wednesday, pushing the market capitalization below $2 trillion again, according to CoinGecko.
Bitcoin shed 3.3% over the past day, trading at $45,362 as of 6.52 a.m. ET. The largest cryptocurrency by market capitalization tested a lower level of support at $44,213 during Asia’s late morning trading hours, as sellers were collecting profits per data from cryptocurrency exchange Kraken.
Analysts of crypto analytics firm Arcane Research note that a daily close below the 200-day moving average of 39,813 will likely see the price drop further to test the support of the consolidation range near $42,000, but a climb above $48,000 will signal longer-term strength and could propel bitcoin to touch $50,000 for the first time in three months.
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Ether is posting 24-hour losses in the 6-7% range, changing hands at $3,050, though certain trading patterns suggest a bullish outlook. Open interest of CME’s ETH futures is currently at an all-time high of $650 million. Arcane analysts say, “The percentage share of Ether’s contribution to the open interest of the crypto futures on CME has climbed rapidly since launch (now accounting for 26.5% of the total open interest), suggesting that institutional traders are eagerly building up ETH exposure at the moment.”
Similarly, most major altcoins are trading in the red, except biggest winners of the week, Solana (SOL) and Terra (LUNA), up by 2.7 and 1% on the day respectively. Throughout the week Solana and Terra’s native cryptocurrencies have been steadily climbing to conquer new all-time highs.
SOL, the token of Ethereum competitor Solana, rose above $60 for the first time just 2 days ago and quickly crossed another psychological threshold of $75 the following day amid the excitement surrounding the debut of NFT collection “The Degenerate Ape Academy” on Solana’s first fully-fledged marketplace for non-fungible tokens, Solanart. The entire collection was sold out in eight minutes and raised approximately $2.5 million.
The LUNA token of blockchain platform Terra, which supports fiat-pegged stablecoins, also set a temporary new price record of $26.89 this week. The project is developed by South Korean firm Terraform Labs, backed by high-profile investors such as Pantera Capital, Galaxy Digital and Coinbase Ventures.
August 9 saw the launch of Wormhole, the so-called “bridge” protocol connecting Solana and other blockchain networks, including Terra, Ethereum and Binance Smart Chain. The project is supposed to help tokenized assets, including non-fungible tokens, move seamlessly across chains.