After marking a multi-month high yesterday above $24,000, the price of bitcoin plunged back to $23,506. Most altcoins are also bleeding today. Waima so many altcoins showed significant jumps especially cryptos from the Terra ecosystem as well as ETHW, all of which rose by double digits.
Bitcoin closed out its best month in over a year in January, though it dipped below $23,000 at the end. The focus is on the US Federal Reserve on February 1 as it is scheduled to conclude its first FOMC meeting of the year and raise key interest rates by 25 basis points.
This is exactly what happened on Thursday, as the rate in the US is now up to 4.75. Although it did not lead to immediate price volatility, BTC continued to rise later, jumping to $24,350 (on Bitstamp).
This marked the highest price of bitcoin since August last year. However, the surge to maintain the $24,000 trading level was short-lived and the streak pushed the price of BTC lower. As a result, bitcoin slumped below $23,500.
Nevertheless, its market cap remains above $450 billion, but its dominance of altcoins is down to 42%. While most of the larger-cap altcoins have retraced lower levels, Terra Classic and USTC have even surged. Both tokens from the Terra ecosystem rose by double digits, as USTC's surge was impressive. The controversial algorithmic stablecoin has soared over 60%.
Ethereum POW was another notable gainer on the daily scale, having surged by 17% to $4.6. At the same time, Ethereum fell by 1.5% to $1,650. Binance Coin, Ripple, Cardano, Dogecoin, Polygon, OKB, Solana and Litecoin are also in big falls.
Polkadot and Shiba Inu are among the few exceptions, as well as Ethereum Classic. All this has increased up to 5%. The cumulative market cap of all crypto assets has lost a bit since yesterday and is now down to $1.075 trillion.
