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Bitcoin Ethereum DeFi NFT Crypto Market Daily

Bitcoin mining difficulty hits new high as crypto market sell-off continues

2022.01.21 Adam James

Meanwhile, Elon Musk has taken to Twitter to criticize the platform for using resources on NFT verification.

The wider cryptocurrency market is down more than 7% over the past 24 hours after a severe sell-off rocked coin and token prices across the board. Some major altcoins, such as LINK, are down more than 10%. The collapse has dropped the overall crypto market capitalization below $2 trillion.

The cryptocurrency market has undergone a harsh sell-off over the past 24 hours. Source: COIN360

According to on-chain data from glassnode, BTC investors have realized net daily losses between $600 million and $875 million. However, investment losses are counter to the Bitcoin network’s mining difficulty — i.e., how hard it is for miners to successfully mine a new block on the network — which has reached a new all-time high after the latest difficulty adjustment.

NFT Snapshot: Elon Musk criticizes Twitter NFT verification

Elon Musk has publicly criticized Twitter for dedicating resources to the verification of nonfungible-token profile pictures. The outspoken founder of Tesla expressed that those resources would be better spent combating spam bots, writing

“Twitter is spending engineering resources on this bs while crypto scammers are throwing a spambot block party in every thread!?”

Tesla recently began support for DOGE — Musk’s cryptocurrency of choice — purchases, despite criticism from many in the industry who see little value in the most well-known memecoin.

Top altcoin gainers and losers: LOOKS leads majors

  • TRIO/USDT +14.14%
  • ABT/USDT +10.51%
  • DYDX/USDT +7.76%
  • GM/USDT -14.04%
  • ITC/USDT -14.20%
  • SPELL/USDT -15.74%

There are currently no large-cap altcoins seeing noteworthy gains on OKX, per the exchange’s default time settings. On the flip side, smaller-cap altcoins are being hit the hardest and seeing the worst price declines.

SPELL is one of the worst-performing altcoins on OKX today. Source: OKX, TradingView

BTC technical analysis: Collapsed through support

The price of BTC has collapsed through support and is now in danger of seeing further declines. Buyers have been reluctant to capitulate on their positions as sellers look for more exit liquidity — a recipe that generally spells more downside.

OKX’s BTC/USDT 4h chart — 1/21. Source: OKX, TradingView

ETH technical analysis: Additional risk

The price of ETH is also struggling, especially against BTC. Some analysts have pointed out that the price of ETH may be at increased risk from the number of collateralized loans in the decentralized finance sector — which may experience liquidations if price declines continue.

OKX’s ETH/BTC 4h chart — 1/21. Source: OKX, TradingView

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Disclaimer: This material should not be taken as the basis for making investment decisions, nor be construed as a recommendation to engage in investment transactions. Trading digital assets involve significant risk and can result in the loss of your invested capital. You should ensure that you fully understand the risk involved and take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.