Bitcoin (BTC) briefly rose to a high of $69,300 during Asian trading hours, but has remained defensive below $69,000, continuing to decline 2.5% on a 24-hour basis.
Profit-taking from Monday continued as several major tokens fell. Ether and Solana’s SOL fell by 2.8%, while Cardano’s ADA and Dogecoin (DOGE) fell by 4%. BNB on the BNB chain was the only green token that rose by just 1.8%.
The broad-based CoinDesk 20, the largest non-stablecoin liquidity index, fell 3%.
Alex Kupczykevich, senior market analyst at FxPro, told CoinDesk that demand for Bitcoin and major altcoins in the Asian session points to trade optimism, with the release of the US Consumer Price Index later on Wednesday. He warned that volatility could explode as a result.
“US CPI reporting has caused a spike in volatility comparable to NFP in recent years.” [nonfarm payrolls report]has great potential to influence the market on Wednesday,” Kupczykevich said.
Still, some analysts said Bitcoin's correction may be over. On-chain analytics firm Glassnode said in a report on Tuesday that selling pressure from certain long-term wallets appears to have subsided in recent weeks as demand for spot Bitcoin soars.
“Bitcoin’s strong performance over the past 12 months has been driven by a surge in spot trading volumes and exchange deposits and withdrawals,” said analysts at blockchain data tracking firm Glassnode. “Profit taking by long-term holders surged significantly to an ATH of $73,000, but has subsided in recent weeks. This is in line with increased new demand driven by US spot ETFs.”
The company defines long-term holders as wallets that hold tokens for more than 155 days, rather than trading on a weekly or daily period.
