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‘Crypto Is Dead’ Calling Exaggerated, Says Analyst As Bitcoin (BTC), Ethereum (ETH) Hold It Together

Most major coins were trading lower Thursday night as the global cryptocurrency market capitalization fell 1.2% to $1.06 trillion at press time.


Price performance of large coins
Coin 24 hours a day 7 days Price
Bitcoin BTC/USD -1.8% -4.9% $22,668.99
Ethereum ETH/USD -2.2% -6.4% $1,611.71
Dogecoin DOGE/USD 0.5% -2.6% $0.07

Top 24-hour winners (data via CoinMarketCap)
Cryptocurrency 24-hour % change (+/-) Price
Flow (FLOW +38.6% $2.63
Trust Wallet Token (TWT) +11.6% $1.16
1 inch mesh (1 INCH) +7.3% $0.84

See also: Best USDC interest rates

Why it matters: Risk assets had not been adjusted at press time, with Bitcoin and Ethereum stepped in the red, while stock futures were in the green. S&P 500 and Nasdaq futures were up 0.2% and 0.3%, respectively, at press time.

Edward Moyaa senior market analyst at OANDA, said that while Bitcoin’s correlation with stocks remains intact, the digital asset has underperformed in recent sessions.

“A surge in expectations of Fed rate hikes has limited how high Bitcoin can go now, but as long as traders are confident that the peak in Treasury yields will remain in place, Bitcoin may have already bottomed,” Moya wrote in a note seen by Benzinga.

However, Moya is bullish on cryptocurrencies as a whole. “Calls that crypto is dead have been exaggerated. In fact, crypto is alive and well.”

The analyst’s optimism was based on Coinbase Global Inc COIN announce a collaboration with Black stone which would give the latter’s investment management platform direct access to cryptocurrencies.

Meanwhile, the yield on 10-year Treasury notes fell 5.3 basis points to 2.696% on Thursday. The gap between the two-year and 10-year Treasury yields closed by 35.7 basis points to reach the lowest inversion since 2000, Reuters reported. Stocks have largely ignored this inversion, according to Moya.

Delphi Digital pointed out in a note that historical data shows that when the Fed Funds rate is above the neutral rate, “recessions tend to occur.”

Interest rate neutrality means that further interest rate increases from the US central bank will lead to restrictive measures.

The difference between Fed Funds rate vs. Neutral Rate Ad Inflation — Courtesy Delphi Digital

“Economic factors such as stock market cap-to-GDP, consumer sentiment with the unemployment rate, and declining GDP suggest that the current market movement is a bear market rally,” the independent research shop said.

Cryptocurrency trader Justin Bennett said its total market cap could touch $1.15 trillion if it recovers levels of $1.05 trillion.

Read next: Coinbase asks Supreme Court to stop user lawsuits related to dogecoin and scammers

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