Bitcoin (BTC) temporarily surpassed $25,000 on the 16th, but then fell below $23,500, reaching around $23,800 around 12:00 Japan time on the 17th.
● CoinDesk Market Index (CMI): 1,098, -3.4%
Bitcoin: $23,618, -4.8%
Ethereum: $1,646, -3.2%
● S&P500: 4,090.41, -1.4%
Gold: $1842, +0.4%
Bitcoin fell more than 4% in 24 hours, near $23,600. It briefly rose above $25,100, but then fell. The $25,000 mark reflected a surge in inflation and economic optimism for the first time since August last year, but the US Producer Price Index (PPI) rose unexpectedly by 0.7% in January from the previous month. The optimism seems to have died down in a matter of hours.
These price movements reminded us that Bitcoin and other crypto assets are still in an uncertain situation. Investment bank DA Davidson downgraded crypto trading giant Coinbase from buy to neutral, while DeFi protocol Platypus Finance was hit by a flash loan attack that caused losses of up to $8.5 million.
Ethereum (ETH) made a similar move, rising above $1,700 for a second day in a row before falling. In 24 hours, it fell 1% to near $1,650.
Other crypto assets also fluctuated. Layer 1 token Aptos (APT) is down 7.9% in 24 hours after gaining more than 9% at one point. Polygon (MATIC) rose more than 6.3% after an initial drop. Dogecoin (DOGE) and Shiba Inu coin (SHIB), two popular memecoins, rose sharply the day before, but fell.
The CoinDesk Market Index, which measures the performance of the entire cryptocurrency market, fell 3.8%.
Stock markets fell on the unexpected rise in PPI, with the Nasdaq, S&P 500 and Dow Jones Industrial Average all dropping more than 1%. Investors continue to pay close attention to a strong job market and inflation data that point to solid economic growth.
｜Translation: coindesk JAPAN
｜Editing: Takayuki Masuda
｜Original: First Mover Asia: Crypto Momentum Falters as Bitcoin Retreats to $23.6K