Bitcoin and other major coins were trading significantly lower over the 24-hour period before Tuesday night, as the global cryptocurrency market cap shrank 5.6% to $1.8 trillion.
| coin | 24 hours | 7 days | Price |
|---|---|---|---|
| Bitcoin BTC/USD | -5.7% | -7.8% | $38,154.22 |
| ether ETH/USD | -6.5% | -8.9% | $2,814.31 |
| Dogecoins DOGE/USD | -12.2% | -2.7% | $0.14 |
| cryptocurrency | 24-hour % change (+/-) | Price |
|---|---|---|
| Kyber Network Crystal v2 (KNC) | +4.3% | $5.26 |
| 0x (ZRX) | +4.1% | $0.82 |
| STEP (MEAN GREENWICH TIME) | +0.2% | $3.31 |
See also: Best USDC Interest Rates
Why it matters: Bitcoin and Ethereum traded below psychologically important levels of $40,000 and $3,000 on the day as the Nasdaq closed nearly 4% lower as risk aversion kicked in ahead of the big earnings releases.
“Bitcoin reversed lower as risk aversion returned to Wall Street, with tech stocks leading the decline. Russia’s suspension of gas supplies to Poland has driven risky assets, including bitcoin, sharply lower,” said senior market analyst at OANDA. Edward Moya.
The dollar was the main beneficiary of the prevailing uncertainty. The dollar index, a measure of the greenback’s strength against six currencies, rose to a two-year high of 101.86, according to a Reuters report.
The dollar could see further up on a radical price move federal reservean aggressive stance by China against COVID-19 and the volatile situation in Ukraine, according to Westpac analysts, Reuters reported.
Despite the strength of the US unit, Bitcoin has been resilient, according to cryptocurrency traders Michael van de Poppe.
One asset is in a bull market: the dollar.
But I have to say that despite this massive dollar strength, #Bitcoin remains relatively stable and has not seen a nosedive.
— Michaël van de Poppe (@CryptoMichNL) April 26, 2022
The “remarkably low volatility” was also noted by Arcane Research in a newsletter seen by Benzinga.
“The crypto market appears to be indecisive as Bitcoin price has been hovering around $40,000 for several weeks and traders are waiting for the price to move before acting,” said the data-driven analysis provider.
The recent pullback in cryptocurrencies has “skyrocketed” investor interest in “buying the dip,” according to Santiment.
The financial markets data platform tweeted that the S&P500 correlation is not working in favor of the cryptocurrency sector. Santiment said, “The fear of the masses will play a big part in causing the two markets to break apart.”
Social interest in #buyingthedip has skyrocketed after #crypto’s recent pullback. The #SP500 correlation is not working in favor of the #cryptocurrency sector and mass fear will play a big part in the two markets breaking apart. https://t.co/ET3G72MeW6 pic.twitter.com/sXuCPJAIj4
— Santiment (@santimentfeed) April 26, 2022
Read Next: Ethereum L2 coins like Polygon (MATIC) are having a rough year while L1s are going toe-to-toe, says Research
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