- Bitcoin and other cryptocurrencies lost ground Wednesday following a recent rally.
- Bitcoin in January has been in recovery mode after tumbling 64% in 2022.
- The broader crypto market this month regained a valuation of more than $1 trillion.
Bitcoin and other cryptocurrencies moved lower Wednesday, after recent gains propelled the broader cryptocurrency market’s valuation back above $1 trillion.
Bitcoin so far in 2023 has flown up about 37%, rebounding after a bleak 2022 “crypto winter” performance that left the digital asset down by 64%.
Its January advance contributed to the cryptocurrency market recapturing a valuation of more than $1 trillion. The market lost grip of that valuation after the November collapse of FTX which has since led founder Sam Bankman-Fried to face eight criminal charges. He has pleaded not guilty to the charges.
“Bitcoin is consolidating after making a five-month high. The recent rally couldn’t break above the $23,500 level, which could pave the way for a minor dip towards the $22,000 region,” Edward Moya, senior market analyst at Oanda, said in a note late Tuesday.
He said bitcoin faces major macro events that could lead the world’s largest cryptocurrency to tread water in the short term.
“When all the dust settles from Q4 GDP, the Fed’s preferred inflation gauge, and the Federal Open Market Committee decision, strong resistance should come from the $25,000 level,” he said.
Meanwhile, stablecoin USDC slipped 0.2%. Its parent company Circle has blamed the US Securities & Exchange Commission for the failure of its $9 billion plan to go public through a SPAC, according to the Financial Times.