Major coins traded in the red late on Sunday as the global cryptocurrency market cap fell 0.9% to $1 trillion.
| 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 |
| 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 were lower 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 week’s 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.me’s “Crypto Fear & Greed Index” which flashed “Greed” last week showed “Neutral” at the time of writing indicating a decline in investor sentiment.
Cryptocurrency trader Michaël 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.
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 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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