Bitcoin and Ether Fall Below Key Levels
Date: 2024-02-23 Author: Dima Zakharov Categories: BLOCKCHAIN
Bitcoin and Ethereum's Decline
Bitcoin (BTC) and Ethereum (ETH) couldn't sustain their positions above $52,000 and $3,000, respectively. On Friday, February 23, BTC and ETH dropped to $51,175 and $2,945, marking a 1.5% decrease within a day. Despite a mid-February surge in institutional investor activity, by the end of the week, it began to taper off.
Brief Surge and Pressures
Bitcoin briefly surged above $53,000, while Ethereum reached $3,031 on some exchanges. However, pressure intensified during BTC's rally, triggered by capital inflows into cryptocurrency ETFs launched on the U.S. market.
Preceding Growth and Stablecoin Surge
Prior to the cryptocurrency's rise, there was a sharp increase in stablecoin supply. Santiment reported that in early February, traders holding Tether in amounts ranging from $10,000 to $100,000 acquired USDT tokens totaling $44.3 million, with their reserves increasing over two weeks. The number of USDT addresses holding various amounts of stablecoins reached 5.22 million, the highest for the digital asset.
Address Trends
Address trends also provide insights. Bitcoin addresses decreased by 729,400 in February as holders sold their coins during the rally. Conversely, Ethereum addresses continue to grow, reaching 114.95 million in the middle of the week.
