The FOMC minutes have shown that the Fed still supports more rate cuts if inflation trends downwards to their 2% inflation target. However, some Fed officials indicated that they might support a rate hike if inflation rises or continues to remain well above their target. This is significant as such either decision in the future
The post FOMC Minutes Signal Fed Largely Divided Over Rate Cuts, Bitcoin Falls appeared first on CoinGape.
]]>Shiba Inu (SHIB) Price Trajectory Largely Depends on Bitcoin BeInCrypto
Source link ]]>
Ethereum (ETH) has been under intense selling pressure, raising concerns among investors about the coming weeks. The trend remains bearish, and if this momentum continues, ETH could struggle to find support at key levels. Compared to Bitcoin and other altcoins, ETH has been underperforming, fueling a negative outlook among traders.
Unlike previous market cycles where ETH moved in sync with Bitcoin, recent price action suggests a disconnect between the two assets. Key metrics from IntoTheBlock reveal that ETH remains largely uncorrelated to BTC, showing a 30-day price correlation of just -0.06. This lack of correlation means that Bitcoin’s bullish momentum hasn’t translated into strength for ETH, adding to investor uncertainty.
With Ethereum lagging behind other major cryptocurrencies, analysts warn that further downside is possible unless ETH can reclaim critical resistance levels. The market is closely watching whether ETH can find support and reverse this underwhelming price action or if the bearish trend will continue in the coming weeks. As ETH struggles to regain momentum, investors remain cautious, waiting for a clearer signal before making their next move.
Ethereum Correlation With The Market
Ethereum has been stuck in a downtrend since late December, dropping over 28% from its local high of $4,100. Despite Bitcoin’s bullish momentum, ETH has failed to gain traction, leaving investors concerned about its underwhelming price action. Many are now speculating whether Ethereum could face another disappointing year, as altcoins like Solana, Avalanche, and Polygon continue to outperform ETH in terms of price movement and investor interest.
Key metrics from IntoTheBlock provide an interesting insight into Ethereum’s market behavior. Unlike in previous cycles where ETH closely followed BTC, it now appears largely uncorrelated, with a 30-day price correlation of just -0.06.
This means that even as Bitcoin moves higher, Ethereum has struggled to gain momentum. However, other major assets like Polygon (0.91) and Avalanche (0.93) remain closely correlated, suggesting that ETH’s price action is unique in this cycle.
Looking ahead, February could be a pivotal month for Ethereum. Historically, this has been a bullish period for ETH, and many investors are hoping for a trend reversal. If ETH can break key resistance levels and reclaim lost ground, the sentiment around its performance this cycle could quickly shift. However, failure to gain momentum could lead to continued stagnation, allowing other altcoins to take the spotlight.
Ethereum Struggles Below Key Support As Bears Take Control
Ethereum is trading at $3,090 after failing to hold above the 200-day Exponential Moving Average (EMA) at $3,137. This key level was a crucial support zone for bulls, but now that it has been lost, bearish pressure is mounting.
Bulls are in trouble, as the price action suggests ETH is gearing up for another leg down. If this selling pressure continues, ETH could set a new local low and test lower demand around the $2,900 mark. A breakdown below this level would signal a deeper correction, potentially leading to extended consolidation or further declines.
For Ethereum to regain momentum, bulls must reclaim the $3,300 level and push higher. This zone has acted as a strong resistance in recent weeks, and flipping it into support would confirm a trend reversal. However, if ETH fails to reclaim this mark, the next critical level to watch is below $3,000, where additional buying interest may emerge.
With market sentiment leaning bearish, ETH must hold above key demand zones to avoid a more significant downturn. If bulls cannot step in soon, Ethereum could continue to lag behind Bitcoin and other top altcoins.
Featured image from Dall-E, chart from TradingView
The crypto market saw massive retracement after the spot Bitcoin ETFs listings, with market cap tumbling back to $1.66 trillion from $1.82 trillion. Altcoins such as Ethereum rebounded amid Bitcoin dominance slipping below 50%.
Bitcoin price has traded sideways near $42,500 throughout the week and traders look to accumulate below $40,000, but experts predict the days of the short-term impact of Bitcoin ETF approval are largely over.
Why Crypto Market Is Down Today
The trading volumes across cryptocurrencies took a hit due to factors including volatility, earnings season, and macro. Strong US dollar causing selling pressure on Bitcoin. The US dollar index (DXY) reverses back above 103.50 from 101 in early January.
However, Coinglass data and latest macro data indicate that Bitcoin selling pressure is easing gradually. In the last 24 hours, the crypto market saw over $100 million in total liquidation, with 75% longs and 25% shorts liquidated. Bitcoin recorded $22 million liquidation and Ethereum saw $20 million liquidation. However, the trend is changing as short liquidation is rising in the last 12 hours.
BTC’s volatility level dropped to a new low in the past month, with both major terms RV and IV showing significant declines, and short-term IV plummeting to below 45%.
According to futures and options data, the short-term impact of the spot Bitcoin ETF is largely over. The funding rate looks attractive to traders and a buying will start soon. BTC futures and options open interests (OI) both are rising again in the last 4 hours. BTC OI across exchanges including CME, Binance, and Coinbase are recovering, with a 0.35% jump to $18.31 billion of total BTC futures open interest.
In contrast, Ethereum open interest (OI) fell over 2% in the last 24 hours, with a total ETH OI of $8.85 billion. However, Solana and XRP OI are rising again and prices could make a comeback soon.
Also Read: GBTC Outflows Make Way Into Spot Bitcoin ETFs, Bitwise Records $68 Million Inflows
Bitcoin and Crypto Looks Promising
Popular analyst Crypto Birb said the cyclical nature of risk-adjusted returns of Bitcoin looks promising for the next 12-18 months. He predicts that if historical patterns come into effect, holding BTC after the 4th halving and until 2026 is super bullish.
Top analyst and trader Michael van de Poppe said “People are bearish on Bitcoin and have a negative outlook. Don’t be like that. Buy the dip and hold.”
The ETFs on #Bitcoin have a net inflow of $782 million over the first three days.
That’s more than 50% higher than ALL ETFs combined have done in 2023 in terms of volume.
People are bearish on #Bitcoin and have a negative outlook.
Don’t be like that. Buy the dip and hold.
— Michaël van de Poppe (@CryptoMichNL) January 17, 2024
BTC price is currently trading at $42,745. The 24-hour low and high are $42,189 and $42,880, respectively. The trading volume remains low ahead of Friday’s expiry. Bitcoin gaining upside momentum will bring a pullback across altcoins, with the first hint of Ethereum open interest falling.
Also Read: Bitcoin Miners On A Aggressive Selling Spree, BTC Hashrate Tanks 34%
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Bitcoin, Ethereum, Dogecoin Largely Unchanged, Shiba Inu Top Daily Gainer – BlackRock (NYSE:BLK) Benzinga
Source link ]]>
Bitcoin (BTC) tumbled below a key support level of $38,000 this week, as concerns over an economic recession and rising interest rates intensified.
The token slumped over 8% in the past 24 hours, hitting a 1-1/2 month low of around $35,000. The fall was also one of its worst declines so far in 2022. The token is now about 10% above its lowest level this year, hit in Jan.
But BTC’s latest tumble also happened in lockstep with U.S. stock markets. The token has consistently tracked stock markets this year, particularly major technology stocks in the Nasdaq Composite and the Nasdaq 100 indexes.
Rising interest rates are the biggest concern for crypto and equity traders alike. The Federal Reserve has already hiked rates twice this year, and is set to raise them further to combat rampant inflation.
BTC falls in lockstep with the Nasdaq
BTC’s one-day chart shows that the token’s latest tumble began just around the U.S.-market open. Both the Nasdaq Composite and the Nasdaq 100 indexes also lost around 5% on Wednesday.
Technology stocks are sensitive to rising rates as it makes their future earnings appear less attractive. Their rally through 2021 was driven largely by low interest rates, which makes it easy to borrow money and invest them into stocks- something that also boosted BTC.
As such, the token tends to behave more like a technology stock.
But this also had the added effect of drastically ramping up inflation, with the Russia-Ukraine war also adding to the issue. Central banks across the globe are now racing to calm inflation with higher rates.
Tight monetary policy is bearish for crypto
The United States isn’t the only country raising interest rates. The Bank of England recently hiked lending rates, as did central banks in Australia and India- both a surprise move. All three banks cited a growing threat to economic growth from inflation.
In such an environment, traders tend to prefer assets with more real-world exposure, such as commodities, utilities and consumer staple goods. Technology stocks are usually avoided.
As such, BTC and the crypto market are likely to see a period of weakness, at least until central banks are able to bring inflation.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Seedify.Fund (SFUND) has remained largely unchanged even as the project announced major new features on its ecosystem. The coin which has acted as an incubator for metaverse and GameFi projects, is hoping to transform its ecosystem in the near future. Here is what you should know:
-
The new updates will see greater integrations of NFTs into Seedify.Fund projects.
-
The project is also expanding yield farming and staking
-
New incentives will roll out to bring more projects on the platform.
Data Source: Tradingview
Seedify.Fund (SFUND) – price remains largely unchanged
It doesn’t seem like many investors were upbeat about this latest news from Seedify.Fund (SFUND). At the time of writing, the token was trading at $4.30, down by around 2% for the day. But there is no arguing that this is a very interesting project.
In recent months, talk about GameFi and the metaverse has been gathering steam. The metaverse in particular is seen as a very integral part of the future of crypto. Seedify.Fund (SFUND) is trying to provide a launchpad that will see such metaverse projects come to life.
Despite this, the coin still remains relatively small, with a market cap of around $105 million. It is likely that the recent news will have no big impact on the price action. Nonetheless, Seedify.Fund (SFUND) will still continue to remain resilient in the near term.
Is Seedify.Fund (SFUND) worth it?
If you are looking for exposure in the metaverse and GameFi tokens, there are probably a lot of options you can go for. However, what makes Seedify.Fund (SFUND) unique is that it acts as an incubator and launchpad for these other coins.
This puts it at the very center of the metaverse and GameFi revolution. The fact that it remains a small microcap coin also means that it has so much to offer in the long run. It is therefore worth looking at.
Britta Pedersen-Pool/Getty Images
- Elon Musk was dubbed Time’s Person of the Year in part because of his impact on markets through Twitter.
- The Tesla chief has caused big moves, especially for cryptocurrencies like bitcoin and dogecoin.
- A Twitter poll from February 5 that read, “Dogecoin to the Moooonn,” sent the crypto soaring 35%.
- Sign up here for our daily newsletter, 10 Things Before the Opening Bell.
Elon Musk was dubbed the Person of the Year by Time magazine, in part because of his impact on financial markets.
That has come largely through one medium: Twitter.
The Tesla chief has garnered 67 million followers as well as a reputation for moving markets and making headlines with his tweets, which are often merely jokes.
In November alone, numerous tweets, such as spats with US senators and a supposed one-star review of JPMorgan, caught the public eye.
Here’s a roundup of a dozen of his most influential market tweets — one for each month of the year.
January
On January 26, near the height of GameStop mania in which shares of the ailing retailer soared past $300, Musk shared a simple tweet: “Gamestonk!!” He linked to Wall Street Bets, the widely followed subreddit that rallied behind GameStop.
February
He sent a bevy of tweets related to dogecoin that led to rallies in the meme token, whose mascot is a Japanese shiba inu dog. A Twitter poll from February 5 that read, “Dogecoin to the Moooonn,” sent the cryptocurrency soaring 35%.
March
In March, Musk briefly announced plans to sell a non-fungible token, or NFT, and then quickly backed off. More notably though, he said people could begin buying Teslas with bitcoin. The price of bitcoin rose after the tweet.
April
He referred to himself as the “dogefather” in an April 28 tweet that preceded his appearance as the host of “Saturday Night Live.” That tweet, alongside endorsements from billionaire investor Mark Cuban, sent dogecoin as much as 30% higher. Musk’s appearance on SNL, though, led to a dogecoin dip.
May
Just two months after announcing Tesla would accept bitcoin, Musk reneged on the plan. In a series of tweets, he explained his concerns over the energy usage and impact on the environment related to processing transactions and mining bitcoin. The U-turn triggered a slump in Tesla stock and the digital asset market.
June
Musk caused the price of bitcoin to jump in June after the he tweeted the EV maker would begin accepting bitcoin once “there’s confirmation of reasonable (~50%) clean energy usage by miners with positive future trend.”
July
His sway over the markets began waning in July and he stayed away from market-moving tweets for the most part. He did, however, sneak in a Matrix meme that read “dogecoin is money.”
August
After Cuban told CNBC that dogecoin is the best cryptocurrency as a medium of exchange, Musk chimed in on Twitter to say, “I’ve been saying this for a while.”
September
But in September, Musk said dogecoin fees would have to drop for it to become a more feasible payment option. The tweet came after AMC CEO Adam Aron toyed with the idea of accepting dogecoin as payment.
October
Shiba inu, the self-proclaimed “dogecoin killer,” began an epic surge in October after Musk tweeted a photo of his new Japanese pup named “Floki.” He later revealed he didn’t have any crypto holdings in shiba inu — just in bitcoin, ether, and dogecoin.
November
Tesla stock tumbled in November after Musk posted a Twitter poll asking if he should sell 10% of his stake because “much is made lately of unrealized gains being a means of tax avoidance.” Of the 3.5 million people who voted, nearly 60% voted yes.
December
In December, he continued to offload Tesla shares to reach his 10% goal and said he would pay $11 billion in taxes. In Time’s Person of the Year article, he said he doesn’t actually have an effect on markets, though. “Markets move themselves all the time, based on nothing as far as I can tell,” he said.
Bitcoin (CRYPTO: BTC) is taking a breather after running up yesterday as the global cryptocurrency market capitalization rose 0.65% to $2.29 trillion.
What Happened: The apex coin traded 1.26% lower at $54,144.86 over 24 hours. Over a seven-day trailing period, BTC has fallen 23.69%.
Ethereum (CRYPTO: ETH), the second-largest cryptocurrency by market cap, was up 1.95% over 24 hours to $3,611.94. For the week, ETH is up 19.58%.
Shiba Inu-themed Dogecoin (CRYPTO: DOGE) traded 0.85% higher at $0.25 over 24-hours. Over the last seven days, it has risen 20.99%.
See Also: How To Buy Bitcoin (BTC)
Self-described DOGE-Killer, SHIBA INU (SHIB), pulled breaks on a spectacular rally, falling 21.67% to $0.00002335. Over the last seven days, SHIB has gained 220.44%.
SHIB fell 21.74% and 24.05% respectively against BTC and ETH.
The top gainer over 24 hours was Fantom (FTM), which soared 22.43% over 24 hours to $2.01. FTM has spiked 64.57% over the week.
Why It Matters: Delphi Digital, an independent research company, noted that as BTC takes a breather, Layer 1 projects and Decentralized Finance are once again in the limelight.
See Also: Shiba Inu Users Report Not Being Able To Trade Crypto On Coinbase Pro
“Flows from Ethereum to Fantom averaged $10-25M per day over September. But over the last two days, flows to Fantom increased by an unprecedented amount on the back of a new yield farm,” Delphi Digital wrote in a market update.
New Yield Farms Spurring Fantom (FTM), Courtesy Delphi Digital
Algorand (ALGO), Avalanche (AVAX), and FTM have all increased total value locked over the last 40 days, as per Delphi Digital. The common link among all these projects is announcements of incentives that attract yield farmers.
The recent BTC rally was attributed to a large buy order, with whales, or a single whale, purchasing nearly $1.6 billion worth of the cryptocurrency on a centralized exchange in just five minutes, as per CryptoQuant, an on-chain analysis firm.
$BTC price surged by +6.4% in less than 2 hours, what happened?
1. Someone(s) bought up $1.6B worth $BTC via market orders in just 5 minutes
2. Bitcoin has decided where to go. New ATH is possible
3. Greed on the Crypto Market. FOMO started?— CryptoQuant.com (@cryptoquant_com) October 6, 2021
Some analysts though are pointing to the futures market and advocating caution.
QCP Capital, a Singapore-based digital economy trading firm, said that they have seen “bearish-type trades with the spot rally” in the futures segment, reported CoinDesk.
“A total of 1,200x BTC end-October BTC calls were sold yesterday, followed by the buying of over 500x of 50/45k end-October put spread today. In the very short term, we might see some corrective price action in BTC.”
Read Next: What’s Driving Adoption Of Bitcoin, Dogecoin And Ethereum In India And Vietnam?
✓ Share: