According to an analyst, BTC requires a catalyst to surpass the $30,000 mark. Meanwhile, DOGE experienced a surge in value following Twitter's alteration of its logo to the dogecoin symbol.
BTC has maintained a steady trading range for the majority of the last fortnight, with a low of roughly $27,200 and a high of $28,400 on Monday. The leading cryptocurrency in terms of market capitalization was trading at $27,500 at the moment, marking a decrease of over 2% from 24 hours ago. Despite this decline, BTC has still risen by nearly 70% throughout the year, thanks to a strong first quarter in which investors grew more confident regarding inflation and other macroeconomic issues.
In the past few weeks, BTC's value has struggled to remain above $29,000 for more than a brief period due to investor concerns over banking failures and mixed economic indicators.
Edward Moya, a senior market analyst at foreign exchange market maker Oanda, commented via email that "BTC requires a bullish catalyst to surpass the $30,000 threshold. Without a compelling use case argument, prices may consolidate in the mid-$20,000 range."
On Monday, the value of Ether (ETH), the second-largest cryptocurrency, declined by 0.2% and remained at around $1,787. During the first quarter of the year, ETH's value increased by 48%.
Meanwhile, DOGE, a meme-based altcoin strongly supported by Twitter CEO Elon Musk, rose by 16.5% after the social media platform changed its logo from a blue bird to the dogecoin symbol. Another altcoin, Alchemy Pay's ACH token, increased by 7% following news that the company received a $10 million investment from DWF Labs at a $400 million valuation on Mon pday.
The CoinDesk Market Index, which provides an overview of the overall crypto market performance, increased by 0.1% on the same day. However, market liquidity has continued to deteriorate, according to a report released by crypto data firm Kaiko on Monday. The report indicated that the 2% market depth metric for BTC and ETH, which is utilized to evaluate liquidity conditions, has decreased by 50% and 41%, respectively, since the Alameda Research failure in November, also known as the "Alameda gap." The decline has been ongoing and was further exacerbated by Binance's announcement of the curtailment of its zero-fee trading program, as per Kaiko's report.
"Due to the decline of market makers providing liquidity to order books, both bitcoin and ether have been impacted following the FTX collapse and banking crisis," stated the report.
On Monday, equity markets were varied in performance. The S&P 500 finished the day up by 0.3%, whereas the Dow Jones Industrial Average (DJIA) increased by 0.9%. In contrast, the Nasdaq, which is largely comprised of technology stocks, dropped by 0.2%.