Bitcoin, Ethereum, Dogecoin Drop Amid Rate Hike Fears
Major coins traded in the red late on Sunday as the global cryptocurrency market cap fell 0.9% to $1 trillion. Price Performance Of Major Coins Coin 24-hour 7-day Price Bitcoin BTC/USD -0.3% -5% $21,765.19 Ethereum ETH/USD -1.4% -7% $1,570.81 Dogecoin DOGE/USD -0.7% -11% $0.08 Top 24-Hour Gainers (Data via CoinMarketCap) Cryptocurrency 24-Hour % Change (+/-) Price Render Token (RNDR) +11.9% $1.60 Stacks (STX) +12.8% $0.325 Internet Computer (ICP) +7.4% ??$5.60
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What Happened: Both Bitcoin and Ethereum werelower at the time of writing along with other risk assets as both S&P and Nasdaq futures flashed red.
Last week, risk assets came under pressure after Federal Reserve Chair Jerome Powell said interest rates could rise more if inflation did not subside.
If we continue to get, for example, strong labor market reports or higher inflation reports, it may well be the case that we have do more and raise rates more than is priced in, said Powell, reported CNBC.
Risk aversion appears to be in place and that could continue if next weeks inflation report is hot. Investors might dial up bets on how high the Fed will have to take interest rates and that could support a broad move lower for all risky assets, especially crypto, said Edward Moya, a senior market analyst with OANDA on Friday.
Alternative.mes Crypto Fear & Greed Index which flashed Greed last week showed Neutral at the time of writing indicating a decline in investor sentiment.
Cryptocurrency trader Michal van de Poppe noted the slew of data awaiting investors in the fresh trading week including the consumer price index numbers on Tuesday and the retail sales and PPI figures on Wednesday and Friday respectively.
My thoughts are that we're likely to see inflation continue to fall and fall steeply, said Van de Poppe pointing to lower gas prices.
Big week ahead of us.
– CPI on Tuesday.
– Retail Sales & Empire State on Wednesday.
– PPI on Friday.
My thoughts are that we’re likely to see inflation continue to fall and fall steeply.
Gas prices have been dropping like a stone also, and this drop -> markets up. Michal van de Poppe (@CryptoMichNL) February 12, 2023
A CryptoQuant analyst said that the Bitcoin chart has revealed a unique pattern which was last seen in 2019, 2015, and 2012 after which the apex coin underwent a long-term rising trend.
The Bitcoin chart has revealed a unique pattern
“This pattern was last seen in 2019, 2015 and 2012, following which #Bitcoin underwent a long-term rising trend.”
by @GrizzlyBTClover
Linkhttps://t.co/REtEScr6vK CryptoQuant.com (@cryptoquant_com) February 12, 2023
The analyst who goes by the username Grizzly said that the pattern was seen on the 200-day moving average and realized price to the long-term Bitcoin chart.
The formation of a long-term bottom is typically predicted by the overlap/crossing of the 200-day moving average from the top to the realized price, said the analyst.
Screenshot From CryptoQuant Showing Bitcoin Realized Price, 200-Day Moving Average
However, the analyst cautioned it remains to be seen if Bitcoin can decouple from other risk assets such as equities, and behave like a store of value during inflationary times.
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