Crypto Today: Bitcoin recovers above $11K as sentiment improves

Bitcoin retraces a portion of Monday's loss.
Ripple gains more than 10%.
Ethereum struggles to stay above $1K.

Eren Sengezer FXStreet

Following yesterday's heavy sell-off, major cryptocurrencies on Tuesday gained traction amid a relatively positive market sentiment. Although there were no clear drivers behind today's trading action in the crypto space, investors may have seen the latest drop as an opportunity for bargain shopping. In fact, the total market capitalization of all cryptocurrencies, which decreased nearly $150 billion in the last two days, retook nearly $70 billion of the lost cap to surpass $500 billion once again.

As of writing, the BTC/USD pair was up 5.5% at $11,100 while the ETH/USD and the XRP/USD were adding 3.55% and 13.85% at $997 and $1.4 respectively. Nonetheless, a possible rally in the short-term could stay fragile with investors attention staying on developments from South Korea and China.

On Tuesday, Korbit, one of the major cryptocurrency exchanges in South Korea, announced that it was going to stop serving non-citizens to comply with the new regulations ruled imposed by the government. Moreover, in a published statement on Tuesday, "those who do not have their real-name accounts at the same bank with the exchanges will not be allowed to make new deposits into the exchanges' accounts. They will be only allowed to make withdrawals," announced the South Korean Financial Services Commission.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

EUR/USD looks sidelined around 1.1850

EUR/USD remains on the back foot, extending its bearish tone and sliding towards the 1.1850 area to print fresh daily lows on Monday. The move lower comes as the US Dollar gathers modest traction, with thin liquidity and subdued volatility amplifying price swings amid the US market holiday.

GBP/USD flirts with daily lows near 1.3630

GBP/USD has quickly given back Friday’s solid gains, turning lower at the start of the week and drifting back towards the 1.3630 area. The focus now shifts squarely to Tuesday’s UK labour market report, which is likely to keep the quid firmly in the spotlight and could set the tone for Cable’s next move.

Gold battle around $5,000 continues

Gold is giving back part of Friday’s sharp rebound, deflating below the key $5,000 mark per troy ounce as the new week gets underway. Modest gains in the US Dollar are keeping the metal in check, while thin trading conditions, due to the Presidents Day holiday in the US, are adding to the choppy and hesitant tone across markets.

Bitcoin consolidates as on-chain data show mixed signals

Bitcoin price has consolidated between $65,700 and $72,000 over the past nine days, with no clear directional bias. US-listed spot ETFs recorded a $359.91 million weekly outflow, marking the fourth consecutive week of withdrawals.

The week ahead: Key inflation readings and why the AI trade could be overdone

It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.

XRP steadies in narrow range as fund inflows, futures interest rise

Ripple is trading in a narrow range between $1.45 (immediate support) and $1.50 (resistance) at the time of writing on Monday. The remittance token extended its recovery last week, peaking at $1.67 on Sunday from the weekly open at $1.43.