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Bitcoin price seeks support near $35,000 as DeFi tokens rise

Bitcoin’s price is finding delicate support at $35,000 after falling 7.4% in the last hours of January 19.

According to Joseph Young, a financial analyst, the correction was primarily due to an overheated derivatives market and uncertainty about whether BTC can return to the $40,000 level. Data from TradingView shows that the price of Bitcoin fell as low as $33,400 before recovering to the $35,000 level.

However, all is not lost for the market-leading cryptocurrency. BlackRock, the world’s largest investment management company, has submitted submissions to the US Securities and Exchange Commission that mention the possibility of using derivatives of Bitcoin and other assets as part of your investment scheme.

According to Decentrader analyst Filbfilb, Bitcoin could be stuck in consolidation between $30,000 and $38,000, with a bunch of buy orders currently stacked between $30,000 and $33,000. The analyst stated that demand at the $30,000 low was tested earlier today. Since then, it has rebounded with Coinbase leading the price down. The market is frightful in the demand zone, as evidenced by funding. Filbfilb went on to say that a more profound drop is not expected and that we are more likely to see a long phase of consolidation. 

The analyst also noted that the new issuance of Tether, USDT, had recently been suspended. Still, new money was released on January 20 following a request from iFinex Inc. for a 30-day extension to produce legal documents for the New York State Attorney General.

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Traditional markets saw an increase in optimism on January 20 when the United States swore in Joseph R. Biden as its 46th president.

The S&P 500, NASDAQ, and Dow closed the green trading day, increasing by 1.39%, 2.31%, and 0.83%, respectively. The S&P 500 and the NASDAQ also reached new all-time highs during the trading day.

While most cryptocurrencies are posting losses, Polkadot (DOT) resumed its uptrend by rising 5.04%. The only other cryptocurrency in the top 30 that posted notable gains was VeChain (VET), which was up 11.47%.

Hedera Hashgraph (HBAR) has also shown outstanding performance, increasing 44% overnight and is currently trading near $0.0984. REN also skyrocketed earlier today, gaining 15.94% in the last 24 hours.

The capitalization of the entire cryptocurrency market is currently $995.5 billion, and the dominance rate of Bitcoin is 64.8%.

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