Bitcoin and other cryptocurrencies experienced little change on Monday as prices retreated from their recent 13-month highs. This adjustment came after a key court ruling in the United States regarding crypto regulation.
Bitcoin’s price has remained relatively stable over the past 24 hours, trading between $30,000 and $31,000. Last Thursday, the leading digital asset briefly surged near $31,750 following a favorable court ruling for token issuer Ripple. However, Bitcoin has since corrected downwards.
According to Alex Kuptsikevich, an analyst at broker FxPro, the market is currently “cooling off” after a rally from the 200-week average. If risk-off sentiment strengthens later in the week, failure to rally from current levels could lead to a correction towards the $27,000 area. On the other hand, surpassing $32,000 would confirm bullish sentiment and potentially pave the way for $35,000 in the coming weeks.
The recent court ruling gave hope to cryptocurrency enthusiasts by suggesting that many tokens would not be classified as securities. This would be particularly advantageous for digital assets such as Bitcoin and brokers like Coinbase Global (ticker: COIN). However, traders have been carefully considering the complex nature of the ruling, realizing that it may not hold the broad implications initially anticipated.
In addition to Bitcoin, Ether, the second-largest token, remained relatively stable at $1,930. Altcoins (smaller cryptocurrencies) experienced weakness, with Cardano and Polygon each declining by 1%. Memecoins were more mixed, as Dogecoin advanced by 1% while Shiba Inu declined by 2%.