Bitcoin Price Slips Into the Red as Robinhood-Fueled Rally Stalls

Bitcoin price is at an 8-month high but the momentum can be short-lived.| Source: Shutterstock

Cryptocurrency prices went south on Monday after Japan’s Financial Services Agency (FSA) announced that it may conduct on-site inspections of domestic cryptocurrency exchanges in response to Coincheck’s $530 million hack. The Bitcoin price led the retreat with a five percent decline, and most other top-tier coins followed suit.

As a rule, Japan has been very welcoming to the nascent cryptocurrency industry, and favorable regulatory policies have enabled the country to become one of the ecosystem’s central hubs.

Source: CoinMarketCap

Consequently, the prospect that Japanese regulators may take a harder stance against cryptocurrency exchanges could be a contributing factor to today’s moderate decline, which reduced the cryptocurrency market cap to $565 billion.

Bitcoin Price Fails to Hold Above $12,000

Prior to the downturn, the market had been trading up on the news that stock trading app Robinhood plans to launch commission-free cryptocurrency trading in February for a limited number of customers — a move that will likely present brokerage giant Coinbase with its first legitimate competitor and bring new investors into the marketplace.

Bitcoin Price Chart

On Sunday, the Bitcoin price peaked at $12,190, but it failed to hold above the $12,000 mark and sunk even lower on Monday morning. At present, the Bitcoin price is trading at $11,262 on Bitfinex, which represents a 24-hour decline of five percent and provides the most prominent cryptocurrency with a $189 billion market cap.

Ethereum Price Cools Off

The Ethereum price followed a similar trajectory, declining four percent to $1,181 following a significant weekend rally that had lifted it as high as $1,260. Ethereum now has a valuation of $115.3 billion, providing the second-largest cryptocurrency with a 20 percent share of the total cryptocurrency market cap.

NEO Makes Tepid Advance Despite Rocky Market

Altcoin prices generally tracked the market index on Monday, but two top-tier cryptocurrencies managed to post relatively strong performances.

The first of these was Ripple’s XRP token, whose price declined one percent to $1.26. Despite this pullback, XRP posted the second-best performance among top-10 cryptocurrencies and outperformed the market by three percentage points.

Fourth-ranked Bitcoin Cash was not so lucky, as its price declined five percent to $1,653. Cardano’s seven percent decline was worst among top 10-cryptocurrencies, but EOS and Stellar did not perform much better.

NEO, ranked eighth, was the lone top 10-cryptocurrency to post a single-day advance. The NEO price increased by four percent to just under $155, providing the token with a $10.1 billion market cap.

Litecoin’s five percent decline forced it down to ninth in the market cap rankings, and NEM — still languishing after $530 million worth of tokens were stolen in the Coincheck hack — declined six percent to $0.95.

Click here for a real-time Bitcoin price chart and here for the current cryptocurrency market cap.

Last modified: March 4, 2021 5:04 PM

Josiah Wilmoth: Josiah is the former U.S. Editor at CCN.com, where he focused on financial markets. He lives in rural Virginia. Connect with him on LinkedIn or email him directly at josiah.wilmoth(at)ccn.com.