Bitcoin and Altcoins Correct After ‘Illegal Financing’ Criticism by Yellen

On Tuesday, Ether (ETH) had a bullish breakout that pushed the price to a fresh high of $1,428.

While the move may be technical in nature, the fundamentals for Etheruem continue to improve as less than a month after launch, there is now $3.8 billion worth of ETH locked on the Eth2 blockchain.

The rapid rise in price obviously caught the attention of pro traders, but Cointelegraph analyst Marcel Pechman warned that Ether’s rise to new highs was also accompanied by a large increase in positions. short.

Ether’s break to new highs had little impact on Bitcoin’s price and it seems that critical comments from former US Federal Reserve chair Janet Yellen are negatively impacting the broader market at the moment.

Yellen, who has been nominated as President-Elect Biden’s Treasury Secretary, said cryptocurrencies are used “primarily for illegal financing”.

Still Bullish

Despite the slight correction today, institutional investors are still bullish on Bitcoin’s long-term outlook. Recent projections from hedge fund Vailshire Capital Management call for a “breakout soon” and PlanB, creator of the popular Stock-to-Flow model, has predicted that Bitcoin price could close near $48,000.

In contrast to crypto markets, traditional markets ended the day on a high as Yellen’s call for additional economic stimulus was seen as a positive by Wall Street. The S&P 500, Dow, and NASDAQ all finished the trading day strongly following Yellen’s statement, closing up 0.81%, 0.38% and 1.5%, respectively.

Despite the negative views expressed by Yellen, positive developments for several blockchain projects helped push the prices of selected altcoins higher.

Engine Prices (ENJ) rose 71% after the project was officially authorized for trading by the Japan Virtual Currency Exchange Association (JVCEA). Apart from Ether (ETH), the top 20 best performing coins over the last 24 hours is Bitcoin Cash (BCH), up 7.46% and trading at $=546.

The overall cryptocurrency market cap is now at $1.046 trillion and Bitcoin’s dominance rate is 65%.

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