Bitcoin BTC price hovers around $29.3,000 after Binance sell order, UK inflation data

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The largest cryptocurrency by market capitalization recently fell below $30,000 a day after regaining its perch above that psychologically important threshold and dropping as low as $29,045 at one point, data shows. from CoinDesk.

The decline also caught traders betting on a rise off guard, as the majority of BTC liquidated positions were long, according to data from futures and trading platform Coinglass.

Ether (ETH) followed a similar pattern, falling below $2,000 on Wednesday for the first time in nearly a week. The second-largest cryptocurrency by market value recently changed hands around $1,981, down more than 4% from the same time on Tuesday.

Most major cryptos were in the red on Wednesday, including a number of decentralized finance tokens. DeFi exchange Uniswaps UNI and Aaves lending platform AAVE fell 6% and 7% respectively, to trade at around $5.90 and $74.85. MKR makers fell 5% to hover around $729.31.

The CoinDesk Market Index (CMI), which measures the overall performance of the crypto market, was down 3% for the day.

Decentralized exchange (DEX) volumes had risen amid growing concerns about their centralized counterparts, wrote Joshua Frank, co-founder and CEO of digital asset news platform The Tie, in an e-mail. email to CoinDesk.

I think it’s likely we’ll see this trend continue until we get some clarity on Binance’s regulatory situation, Frank wrote, although he added that DeFi is less than 5% of capitalization. global crypto exchange.

Meanwhile, growing regulatory scrutiny has continued with the Securities and Exchange Commission (SEC) reopening a proposal from last year that would target DeFi exchanges for regulation.

The regulatory crackdown on DeFi, concerns about security with DeFi hacks occurring regularly, and nervousness about who the counterparties on DeFi platforms really are are likely to continue to hold back actual institutional adoption, Frank said.

Stocks were mixed during the afternoon as investors continued to process first-quarter earnings from major banks, including disappointing results from Morgan Stanley. The S&P 500 was trading flat, while the tech-heavy Nasdaq was up 0.1%. The Dow Jones Industrial Average (DJIA) fell 0.3%.

The two-year Treasury yield, an indicator of short-term interest rate expectations, rose 6 basis points to 4.26%. The CME FedWatch, which measures traders’ expectations for U.S. central bank interest rate decisions, showed an 83% chance of a 25 basis point hike in May when the Federal Open Market Committee (FOMC ) will meet again.

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