Following a change in the Twitter logo, Bitcoin falls to $27.5K, but Dogecoin increases

Logo for Consensus 2023 Alex Thorn

Chief Research Officer Galaxy

At Consensus 2023, Alex Thorn will discuss his perspective on "Bitcoin and Inflation: It's Complex."

Bitcoin (BTC) traded as low as $27,200 and as high as $28,400 on Monday, remaining solidly within the range it has maintained for the majority of the last two weeks.

According to market capitalization, the biggest cryptocurrency was recently trading at $27,500, down more than 2% from 24 hours prior. After a strong first quarter in which investors were more upbeat about inflation and other macroeconomic challenges, BTC is up about 70% for the year.

But when investors consider banking failures, BTC's price has been unable to rise beyond $29,000 for more than a few brief minutes recently.

According to Edward Moya, senior market analyst at foreign exchange market maker Oanda, "Bitcoin requires a bullish catalyst to break above the $30,000 threshold, but unless some meaningful use case argument is made prices could stabilise around the mid-$20,000s."

The second-largest cryptocurrency, Ether (ETH), also declined 0.2% on Monday to trade near $1,787. In the first three months, the price of ETH increased 48%. The meme-based dogecoin (DOGE), which has long been backed by Twitter CEO Elon Musk, had a 16.5% increase among other altcoins when the social media network changed its logo from the customary blue bird to the dogecoin sign. Following a story on Monday stating that market maker DWF Labs had invested $10 million in the company at a $400 million valuation, the native ACH token of payments service Alchemy Pay increased by 7%.

The CoinDesk Market Index, which gauges the performance of the whole crypto market, increased 0.1% for the day.

Market liquidity, however, has gotten worse. According to a research published on Monday by cryptocurrency data firm Kaiko, the so-called "Alameda gap" has grown by 50% and 41%, respectively, since the collapse of Alameda Research, the trading division of cryptocurrency exchange FTX, in November. According to Kaiko, the continued decrease started when exchange Binance said it was scaling back its zero-fee t

rading scheme.

With fewer market makers delivering liquidity to order books in the wake of the FTX collapse and banking crisis, both assets (bitcoin and ether) have suffered, according to the paper.

Monday's equity markets were mixed. The Dow Jones Industrial Average (DJIA) increased by 0.9% while the S&P 500 closed up 0.3%. Yet the tech-heavy Nasdaq fell by 0.2%.