Bitcoin stabilises amid quiet market, while crypto sector sees varied fortunes


27th February 2024 – (New York) The sedate trading temperament that often characterises weekends in the cryptocurrency markets persisted into Monday, with Bitcoin (BTC) exhibiting scant movement. The preeminent digital currency hovered around $51,500, suggesting a period of consolidation after a minor decline below the $51,000 threshold, noted by Alex Kuptsikevich, a senior market analyst at FxPro.

While Bitcoin maintained its composure, the broader crypto market, as indicated by the CD20 gauge, experienced a slight contraction of 0.4% within the last day. Ether (ETH), meanwhile, experienced a modest rebound, climbing back over the $3,100 mark, potentially buoyed by the burgeoning interest in spot ether exchange-traded funds (ETFs).

The cryptocurrency sector, however, did not move in unison, as tokens associated with artificial intelligence (AI) witnessed a downturn. Worldcoin (WLD) and SingularityNET (AGIX) each recorded losses in the vicinity of 4%. Conversely, Mantle, an Ethereum layer-2 platform, saw its tokens surge by 30% to a record high of 93 cents, buoyed by mantleETH surpassing $1.5 billion in value locked last week.

On the institutional front, Oanda, a U.S.-based forex pioneer, announced the unveiling of Oanda Crypto, a London-based cryptocurrency trading platform with registration from the Financial Conduct Authority (FCA). The platform, a result of the prior acquisition of Coinpass, aims to offer over 63 cryptocurrency pairs with an expansive roadmap for the year ahead.

In the decentralized finance (DeFi) space, Frax Finance is exploring the idea of fee distribution to stakers, akin to strategies employed by Uniswap, disclosed Frax’s CEO Sam Kazemian. The governance proposal, if enacted, would renew protocol revenue sharing with veFXS token stakers, reversing a 2022 decision.

Lastly, market analysis points to potential over-leverage in the cryptocurrency market, with the annualized funding rate for the top 25 cryptocurrencies by market value hitting nearly 50%, hinting at a possible market correction should this trend continue.