Bitcoin (BTC), Ethereum (ETH) Spike as stocks, dollars weaken
Bitcoin, Ethereum, and other major currencies rose Thursday night as fears of a bear market in equities and a weaker dollar increased the appeal of the apex coin. The global market value of cryptocurrency increased by 4.8% to $ 1.3 trillion.
| Coin | 24 hours a day | 7 days | Price |
|---|---|---|---|
| Bitcoin BTC / USD | 5.4% | 4.8% | $ 30,304.18 |
| Ethereum ETH / USD | 5.3% | 3.1% | $ 2,018.07 |
| Dogecoin DOGE / USD | 3.6% | 4.9% | $ 0.09 |
| Cryptocurrency | 24-hour% change (+/-) | Price |
|---|---|---|
| Kyber Network Crystal V2 (KNC) | +21.2% | $ 2.66 |
| chain (KDA) | +16.4% | $ 2.67 |
| Helium (HNT) | +12% | $ 91.63 |
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What happened: The S&P 500 fell almost 19% below the highest record reached earlier in 2022; the index is now hovering near the bear market’s territory. A decline of 20% during all-time highs is interpreted as a bear market by many experts.
S&P 500 and Nasdaq futures traded 0.4% and 0.7% higher at the time of press release, respectively.
The dollar index, a measure of the dollar’s strength against six other currencies, fell 0.05% to 103.74, while US 10-year yields fell to 2,772, the lowest since the end of April, according to a Reuters report.
OANDA senior market analyst Edward Moya noted the “free fall” in the dollar when investors buy government bonds due to concerns that the economy is heading for a “tough update.”
“A weaker dollar and bear market fear makes Bitcoin attractive again,” Moya said in a note, seen by Benzinga.
“It seems that the fallout from all the stablecoin drama that sent the cryptocurrencies down sharply is finally disappearing. Bitcoin seems to be consolidating here, but bulls should be happy to see that prices do not mimic what is happening with the stock market.
Pointing to Bitcoins Relative strength indexRekt Capital tweeted on Thursday that the indicator is entering a “period that has historically preceded an oversized return on investment for long-term investors.”
The cryptocurrency trader said that previous reversals from this level were observed in January 2015, December 2018 and March 2020.
#BTC RSI is now entering a period that has historically preceded an oversized return on investment for long-term investors
Previous reversals from this area include January 2015, December 2018 and March 2020
All Bear Market bunners$ BTC #Crypto #Bitcoin pic.twitter.com/jofNT7gnsT
– Rekt Capital (@rektcapital) May 19, 2022
Michael van de Poppe tweeted that due to the recent “heavy crash” there is a chance for 20% -25% relief over the market. The analyst set Bitcoin around $ 34,000 to $ 36,000 levels.
The total market value of #krypto swept the lowest levels of $ 1.1T and appears to be ready for an upward relief.
Due to the powerful crash, there seems to be a chance for 20-25% relief across the market here.
Probably puts #Bitcoin around $ 34-36K. pic.twitter.com/rge5JM1Nlu
– Michaël van de Poppe (@CryptoMichNL) May 19, 2022
The futures market has a different story to tell. Bitcoin’s put / call ratio reached a 12-month high with open interest rates at a 12-month high of 0.72 this week. This is a bearish indicator, according to Delphi Digital.
BTC Put / Call ratio on open interest and volume – with permission from Delphi Digital
The on-chain research company said that the put / call ratio reached as high as 0.96 before Bitcoin’s price fell above 50% in May 2021.
Put / call is a measure of the amount of put purchases in relation to calls. A high ratio means that investors are wondering whether Bitcoin will continue to sell out, or it may indicate that investors are securing portfolios against a decline.
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