Cryptocurrencies Hold Firm Amid Tech Sell-Off
The cryptocurrency market has shown resilience in the face of a tech sell-off, holding its ground despite the Nasdaq-100 entering a technical correction. Over the past three weeks, the market capitalization of cryptocurrencies has repeatedly found support at $2.14 trillion, and this time was no exception. The top performers among popular coins were Cardano, Uniswap, and XRP, while Immutable, Official Trump, and Theta Network suffered significant losses.
Bitcoin dipped below $63K but recovered to $64.3K after attracting fresh buyers. Large long-term investors are driving the market, and their plans may not be fulfilled yet, which could contribute to capital inflows. However, a broad flight from risk in equities could put pressure on cryptocurrencies.
Strive, one of the top ten public companies holding Bitcoin reserves, has increased its holdings by purchasing 79 BTC for $5.2 million at an average price of $65.7K per coin. CryptoQuant notes that inflows of USDC stablecoins into exchanges have exceeded outflows for the first time in over two months, indicating activity from US investors.
The New York Attorney General's Office has criticized the CLARITY Act, which could weaken states' powers to oversee the crypto market and investigate fraud. The Zcash developers have rolled out the Ironwood update on the mainnet after discovering a critical vulnerability.