Cryptocurrency prices are fluctuating due to a range of economic and market issues. Bitcoin (BTC) has been trading in the mid-$20,000s range for the past two weeks, with its price notching a high of about $28,400 and low of $27,200 on Monday. Ethereum (ETH) dropped slightly to just below $1,800. On the flip side, the meme-based Dogecoin (DOGE) surged 16.5% after Twitter updated its logo in favor of the cryptocurrency.

Overall, the digital asset market has been struggling with a decline in liquidity since the crash of Alameda Research & FTX in November. Kaiko, a crypto data firm, reported a decline of 50% and 41% for BTC and ETH’s market depths respectively. This drop in liquidity is the so-called “Alameda gap” present in the market. Furthermore, the overall market index rose slightly by 0.1% with cryptocurrency prices unchecked and unable to ride above $29,000.

In traditional markets, the S&P 500 and Dow Jones Industrial Average (DJIA) closed higher by 0.3% and 0.9%, respectively. However, the tech-heavy US Nasdaq fell by 0.2%. Nonetheless, OPEC+ decided to cut oil production by over 1 million barrels a day and sent oil prices higher. The U.S. Manufacturing Purchasing Managers' Index (PMI) showed a drop to its lowest level in nearly three years, marking a decreased consumer confidence and economic stability in the near future.

All these factors and trends affect crypto prices and determine market movements. The crypto analyst Edward Moya of Oanda suggests that BTC needs a bullish catalyst to break past the $30,000 barrier. He believes if no use case is found to justify its higher prices, it is likely the cryptocurrency will consolidate around its current level. This could result in further dips below $20,000, or Ethereum going down to below $1,500.



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