Chart of the Day
The broader crypto market saw a comeback early Friday after DXY plunged to a weekly low. BTC has established a firm foothold above the $19k support on Thursday, and staged a rally in the late morning of Friday (Asian trading hours) to break out above the $20k threshold. As of the time of writing, the largest cryptocurrency by market cap is changing hands near $20.5k, after jumping by 6% in the last 24 hours. Could this be a trend reversal after the possible bottom formation event hinted at by a confluence of on-chain metrics, or simply a short squeeze to flush out excessive leverage in the market? For one, BTC’s average coin dormancy has dipped below the buying region, and reached a multi-year low. Looking at historical data, the prolonged duration of BTC dormancy usually suggests the formation of a reliable floor price that could pave the way for the next bull trend. Bybit blog reports.
ETH gained pace above the $1,600 resistance alongside BTC, and is currently trading on top of the $1,700 handle, after seeing a 4.5% rise in the same period. The second-largest cryptocurrency by market cap will likely open the door to greater upside momentum if it manages to turn this level into firmer support. Most major altcoins are in the green, with several Layer 1 tokens leading the pack on more than 5% gains over a similar time frame.
Talk of the Town
After securing $350 million in funds earlier in January, Animoca, the leading investment firm and NFT game publisher, added another $110 million to its coffers despite the general fatigue in the market. The new funding round was conducted through a convertible note sale to institutional investors including Temasek, Boyu Capital, and GGV Capital. According to data from Crunchbase, the firm has now raised a total of $775 million in funds across several financing rounds, and pushed its valuation to above $5 billion.
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