updraftplus domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/aonyeani76/cryptocurrencypanther/wp-includes/functions.php on line 6131hustle domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/aonyeani76/cryptocurrencypanther/wp-includes/functions.php on line 6131wpforms-lite domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/aonyeani76/cryptocurrencypanther/wp-includes/functions.php on line 6131Bitcoin (BTC) is making a recovery in the market after a period of low sentiments heightened by German asset sales and Mt Gox creditor’s repayments. The Bitcoin Net Unrealized Profit and Loss (NUPL) is above the asset’s 365 daily average signaling a bullish impact on the market. The price highs of BTC in the last six months have led to more projections as on-chain numbers flip positive.
Recent data from on-chain analytics firm, CryptoQuant shows that BTC’s NUPL is pointing north amid market fluctuations. The net unrealized profit and loss portray the difference between the market cap and the realized cap. When above the login average, it points to an upward swing for Bitcoin.
CryptoQuant analyst explained that it gives a picture of investor profit which can also signal the end of a bull run. “A score above 0 indicates that investors are in profit. Additionally, our cold blue color (below 0) may indicate that the Bitcoin price is periodically suitable for investment. On the other hand, dark orange or red shows that investors’ profits have significantly increased.”
Bitcoin’s 365-day moving average in connection with its NUPL determines asset flows and holder positioning. Basically, if the NUPL is above the average, sentiments point upward while if the figure lies below the average, Bitcoin carries a bearish outlook.
“In this way, whenever the NUPL data approaches SMA 365 during bull rallies, I consider it a buying opportunity. Conversely, during bear rallies, if the NUPL data approaches SMA 365, I see it as a selling opportunity. Of course, the main thing here is to understand which trend we are in”
Sequel to the approval of spot Bitcoin ETFs and institutional inflows that rallied the assets to a new all-time high above $73,000, experts projected a wider adoption for the asset. With flows to Bitcoin funds above $50 billion, policy watchers say macro factors could rally the asset toward the end of Q3 2024. This is because of anticipated interest rate cuts by the Federal Reserve in September. Last week, the US Labour Department showed cooling yearly inflation in the country.
Also Read: JP Morgan and Wells Fargo in Billions of Bad Debt, Will Feds Step In
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.
This year had two distinct parts for financial market participants – one characterized by the dollar’s weakness and one dominated by the dollar’s strength.
The US dollar runs the show both in the traditional and cryptocurrency markets. EUR/USD is the best example of the correlation between the two markets.
It opened the year at 1.06, rallied to 1.12, where it peaked during the summer, and then gave up its gains. The same dollar cycle may be seen in many cryptocurrencies.
For example, Ethereum rallied from the start of the trading year, peaked at $2,000, where it met resistance, and then corrected. Therefore, cryptocurrency traders may want to focus on the dollar’s direction in order to position on the right side of the cryptocurrency market.
On Wednesday, the United States Federal Reserve released its monetary policy decision. It chose to keep the funds rate unchanged as the latest inflation news is encouraging.
Market participants wildly expected the decision, so the focus shifted to the press conference. Jerome Powell was hawkish during the conference in the sense that it kept all the options on the table, including further rate hikes. The hawkish part was that he implied that future rate cuts may not be as many as in the past. In other words, interest rates would remain higher for longer.
Naturally, the dollar rallied.
Ethereum is one of the most popular cryptocurrencies. Also, it is very liquid compared to other cryptocurrencies.
Before the rally that started in 2023, Ethereum formed a contracting triangle. The good news is that such triangles appear at the end of complex corrections.
It means that if they act as reversal patterns, as is the case here, the new move that follows is part of a different pattern.
The chart above shows that Ethereum corrected 50% from its highs but remains in a relatively tight range. By tight, one should refer to the historically high volatility in the cryptocurrency market.
Bulls may want to wait for Ethereum to close above $2,000 before going long. Also, they would want to see Ethereum holding above the $1,400 support area.
On the other hand, bears may want to see the market dropping below the support area provided by the $1,400 level. A drop to $1,000 might be in the cards on such a move.
The US Commerce Department’s recent shows that economic growth and GDP have slowed even as Bitcoin struggles to regain $30,000.
The price of Bitcoin (BTC) has remained relatively stagnant for about a week as the US gross domestic product (GDP) is slowing. Currently trading at $28,870 according to CoinMarketCap data, BTC has been unable to hit $30,000, last seen briefly on the 19th of April, and not seen in the first quarter of the year. This trend follows the GDP’s slowing in the same period.
An economic downturn characterized the year’s first quarter as several factors affecting growth. The US economy consistently struggled with increases in the interest rate, along with inflation. According to a Commerce Department report referenced by CNBC, the US GDP rose at an annualized rate of 1.1 in the first quarter. This figure is even worse than the 2% expected by economists the Dow Jones had surveyed. In comparison, the GDP for Q4 rose 2.6%, with the full-year 2022 GDP pulling a 2.1% rise. GDP is a metric used to measure the production of goods and services in a specified period.
The Commerce Department report also included figures on expenditure. The personal consumption expenditures price index beat the 3.7% estimate, reaching 4.2%. Consumer spending climbed 3.7%, with exports rising by 4.8%. However, gross private domestic investment crashed by 12.5%.
Speaking on the situation, LPL Financial’s chief economist, Jeffrey Roach, implied the possibility of a pivotal moment in the economy. Roach suggested that consumers may not be satisfied about the near future and may be slowly suspending consumption and spending. According to Roach:
“The US economy is likely at an inflection point as consumer spending has softened in recent months. The backward nature of the GDP report is possibly misleading for markets as we know consumers were still spending in January but since March, have pulled back as consumers are getting more pessimistic about the future.”
Historically, the correlation between Bitcoin and the dollar index (DXY) has been negative. The DXY is an index that evaluates the dollar’s exchange rate in comparison with other major fiat currencies. Currently, this negative correlation has strengthened.
According to data from charting and market platform TradingView, the DXY and Bitcoin’s 90-day coefficient has hit -0.70, not seen in two months. This figure was -0.11 about four weeks ago. Except in specific scenarios, the native correlation has withstood for more than three years. The recent strengthening suggests a possible rise in the price of Bitcoin as the US GDP, along with other figures from the Commerce Department, shows disappointing numbers.
Nevertheless, some analysts are still considerably optimistic. Although consumer spending may be waning, the strong job market is still resilient enough to keep general economic activity optimum. However, most other analysts believe the US economy might see a recession later this year. The Federal Reserve has spiked interest rates by over 4.75% in a year. Although inflation fell to 5% last month, it is still much higher than the Fed’s 2% destination.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
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