Dow closes below 30,000 as post-fed rally fades

Cryptocurrencies are mixed on Thursday, although bitcoin and ether manage to stay above closely watched levels.

Bitcoin was down 1.5% in the early afternoon at $21,348 from its price at 5 p.m. yesterday, and Ether was down about 5% at $1,119, according to Dow Jones. MarketData.

Other cryptos fared better. Solana was up 13%, Cardano 6%, and dogecoin 11%, according to CoinDesk.

While bitcoin and ether, by far the two biggest cryptocurrencies, are down, Wednesday’s move by the Federal Reserve eased some of the pressure on cryptocurrencies and may have spurred some bargain hunters, said Naeem Aslam, chief market analyst at AvaTrade.

Another factor is that both are close to key price levels. Bitcoin and ether traded this week for slightly more than the kinds of round numbers that always grab attention: $20,000 for bitcoin and $1,000 for ether. They have been below these levels since December 2020 and January 2021, respectively. Staying above the levels has raised some hope that these prices are depressed enough to attract buyers and create a “bottom” and end the selloff.

But despite the bargain-hunting, Mr Aslam said, the damage to sentiment has been so severe that $20,000 may not last long.

“It is likely that the price will continue to decline, and we will likely see larger offers approaching the $15,000 price level now,” he said.

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