Cryptocurrencies are mixed on Thursday, though bitcoin and ether are managing to remain above closely watched levels.
Bitcoin was down 1.5% in early afternoon trading at $21,348 from its price at 5 p.m. yesterday, and ether was down about 5% at $1,119, according to Dow Jones Market Data.
Other cryptos were faring better. Solana was up 13%, Cardano was up 6% and dogecoin was up 11%, according to CoinDesk.
While bitcoin and ether, by far the two largest cryptocurrencies, are lower, Wednesday’s move by the Federal Reserve eased some of the pressure on cryptocurrencies and may have spurred some bargain hunters, said Naeem Aslam, chief market analyst at AvaTrade.
Another factor is that both are near key price levels. Bitcoin and ether have this week been trading just over the kinds of round numbers that always attract attention—$20,000 for bitcoin and $1,000 for ether. They have been below those levels since December 2020 and January 2021, respectively. Staying above the levels has led to some hope that those prices are depressed enough to entice buyers and create a “floor” and an end to the selloff.
But despite the bargain hunting, Mr. Aslam said, the damage to sentiment has been so severe that $20,000 may not hold for long.
“It is likely that the price may continue to move lower, and we are likely to see bigger bids coming near the $15,000 price level now,” he said.