Bitcoin, Ethereum Outdo Dogecoin Amid Stock Market Turmoil: Analyst Sees Apex Crypto’s ‘Next Major Move’ After This Key US Data
The two largest coins rose over the last 24 hours on Wednesday evening as the global cryptocurrency market cap increased 0.7% to $976.6 billion at press time. Price Performance Of Major Coins Coin 24-hour 7-day Price Bitcoin BTC/USD 1.2% -6.05% $20,082.73 Ethereum ETH/USD 1.8% -6.05% $1,557.15 Dogecoin DOGE/USD -0.4% -9.6% $0.06 Top 24-Hour Gainers (Data via CoinMarketCap) Cryptocurrency 24-Hour % Change (+/-) Price Lido DAO (LDO) +10.4% $1.97 Chiliz (CHZ) +9.7% $0.21 Curve DAO Token (CRV) +8.2% $1.15
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Why It Matters: Ethereums intraday gains were better than Bitcoins at press time. Cryptocurrenciesshrugged off the weakness seen among stocks.
The S&P 500 and Nasdaq futures were down 0.6% and 1.1%, respectively, with U.S. stocks ending August in the red.
Bitcoin is hovering around the $20,000 level despite global stock market weakness.The next major move for Bitcoin will likely come after the nonfarm payroll report, which could show signs of cooling and prompt a short-term relief rally, said Edward Moya, a senior market analyst at OANDA.
Martin Hiesboeck, head of blockchain and crypto research at multi-asset digital trading platform Uphold, said, We do not expect [Bitcoin] & Ethereum to suffer from the monetary policy per se. Further tightening is necessary to bring prices down.
If and when they do, investors will have more disposable income to return to the digital asset market. However, tightening will also lead to trouble in the bond market (Italy first), and housing market (USA) and lead to job losses.
Michal van de Poppe noted on Twitter that Bitcoin is holding a crucial level and has had a swift bounce back.
This has to continue in the coming hours and break $20,250 if it wants to show strength and follow this path, said the cryptocurrency trader.
#Bitcoin holds a crucial level and has a swift bounce back.
This has to continue in the coming hours and break $20,250 if it wants to show strength and follow this path. pic.twitter.com/v1l5eS4s9k Michal van de Poppe (@CryptoMichNL) August 31, 2022
More upside could occur for cryptocurrencies if the dollar index breaks the 108.62 level said Justin Bennett on Twitter.
Maybe a test of 107, followed by a higher high in September toward 112-113, said the trader adding, No change to the macro outlook.
We could get more upside for #crypto "if" the $DXY breaks this short-term trend line.
Maybe a test of 107, followed by a higher high in September toward 112-113.
No change to the macro outlook. $BTC $ETH pic.twitter.com/YV7Q54Tu1I Justin Bennett (@JustinBennettFX) August 31, 2022
The dollar index is a measure of the U.S. currencys strength against a basket of six international currencies. At press time, it stood at 108.99, a 0.26% rise intraday.
Meanwhile, Bitcoins supply on exchanges continues to dwindle, according to Santiment. The market intelligence platform said during downtrends it is familiar to see hodlers making up a greater percentage of overall supply held.
Through all of the volatility since early 2020, #Bitcoin's supply continues being withdrawn away from exchanges. During downtrends such as #crypto's 2022, it is familiar to see long-term #hodlers making up a greater percentage of overall supply held. https://t.co/yfwNkdRGdh pic.twitter.com/pK6b6clcCN Santiment (@santimentfeed) August 31, 2022
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