May 28, 2024


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Bitcoin (BTC), Ethereum (ETH) Rise with Stocks, Dollar Weak

Bitcoin (BTC), Ethereum (ETH) Rise with Stocks, Dollar Weak

BitcoinAnd EthereumOther major currencies rose on Thursday evening as fears of a bear market in stocks and a weak dollar made the major currency more attractive. The global cryptocurrency market capitalization increased by 4.8% to reach $1.3 trillion.

Major currency price performance
Currency 24 hours 7 days price
Bitcoin Bitcoin / US Dollar 5.4% 4.8% $30304.18
Ethereum ETH / USD 5.3% 3.1% 2,018.07 USD
Dogecoin dog / dollar 3.6% 4.9% 0.09 dollars

Top 24 Hour Gainers (data via CoinMarketCap)
Cryptocurrency Change by 24 hours (+/-) price
Kyber Crystal Network V2.0 (KNC) + 21.2% $2.66
Cadena (KDA) + 16.4% $2.67
helium (HNT) + 12% USD 91.63

See also: Best Crypto Debit Cards

What happened: The S&P 500 is down nearly 19% from its all-time high earlier in 2022; The index is now hovering near a bear market area. Many experts interpret a 20% drop from all-time highs as a bear market.

S&P 500 and Nasdaq futures are trading 0.4% and 0.7% higher, respectively, at press time.

The dollar index, a measure of the US currency’s strength against six other currencies, fell 0.05% to 103.74, while 10-year bond yields fell to 2.772, the lowest level since late April, according to Reuters. Report.

OANDA Senior Market Analyst Edward Moya He cited a “free fall” in the dollar as investors buy Treasuries on fears that the economy is heading for a “rough correction”.

“Dollar weakness and bear market fears are making bitcoin attractive again,” Moya said in a note seen by Benzinga.

“The repercussions of all the stable drama that led to a crypto-currency plunge has finally seemed to wear off. Bitcoin looks set to consolidate here, but the bulls should be happy to see prices not mimic what is happening in the stock market.”

Referring to Bitcoin RSIRekt Capital tweeted Thursday, that the index is entering “a period that historically precedes huge investment returns for long-term investors.”

The crypto trader said that previous reversals from this level were observed in January 2015, December 2018, and March 2020.

Michael van de Poppe He tweeted that due to the recent “heavy crash” there is a 20%-25% chance of the market coming to rest. The analyst put Bitcoin in the $34,000 to $36,000 range.

The futures market has another story to tell. Bitcoin’s buy/sell ratio touched a 12-month high as open interest touched 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 – Courtesy of Delphi Digital

The on-chain analysis firm said that the buy/sell ratio reached 0.96 before the bitcoin price plunged more than 50% in May 2021.

The put/call is a measure of how much is bought in relation to calls. A higher ratio indicates that investors are speculating whether Bitcoin will continue to sell or it may indicate investors are hedging their portfolios from an economic downturn.

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