‘Crypto Is Dead’ Calls Are Overblown, Analyst Says As Bitcoin (BTC), Ethereum (ETH) Hold It Together

Most major coins traded lower Thursday night as the global cryptocurrency market capitalization declined 1.2% to $1.06 trillion at press time.

Price performance of major coins
Currency 24 hours 7 days Price
Bitcoin USD/BTC -1.8% -4.9% $22,668.99
Ethereal EUR/USD -2.2% -6.4% $1,611.71
doecoin DOGO/USD 0.5% -2.6% $0.07
Top 24-hour gainers (data via CoinMarketCap)
cryptocurrency 24 hour % change (+/-) Price
Flow (FLOW +38.6% $2.63
Trusted Wallet Token (TWT) +11.6% $1.16
1 inch net (1 INCH) +7.3% $0.84

See also: Best USDC Interest Rates

Because it is important: Risk assets were not aligned at the time of publication, with Bitcoin Y Ethereal treading red, while stock futures were in the green. S&P 500 and Nasdaq futures were up 0.2% and 0.3%, respectively, at press time.

Edward Moyaa senior market analyst at OANDA, said that while Bitcoin’s correlation with equities is still intact, the digital asset has underperformed in recent sessions.

“A surge with Fed rate hike expectations has limited how high Bitcoin can go for now, but as long as traders remain confident that the spike in Treasury yields holds, Bitcoin may have already bottomed out. Moya wrote in a note, seen by Benzinga.

However, Moya is confident in cryptocurrencies as a whole. “Calls that cryptocurrencies are dead have been exaggerated. In fact, cryptocurrencies are alive and well.”

The analyst’s optimism was based on Coinbase Global Inc. CURRENCY announcing an alliance with black rock that would allow the latter’s investment management platform to have direct access to cryptocurrencies.

Meanwhile, 10-year Treasury yields fell 5.3 basis points to 2.696% on Thursday. The gap between yields on two-year and ten-year Treasury notes closed down 35.7 basis points to hit its lowest reversal since 2000, Reuters reported. Equities have largely ignored this investment, according to Moya.

Delphi Digital noted in a note that historical data shows that when the fed funds rate is above neutral interest rates, “recessions tend to occur.”

Rate neutrality implies that any further rate hikes by the US Federal Reserve will result in a tightening action.

Fed Funds Rate Difference Vs. Ad Inflation Neutral Rate – Courtesy of Delphi Digital

“Economic factors such as stock market capitalization relative to GDP, consumer confidence relative to unemployment, and declining GDP imply that the current market move is a bear market rebound,” the boutique said. independent investigation.

cryptocurrency trader justin bennett he said the total market capitalization could touch the $1.15 trillion mark if it recovers to $1.05 trillion levels.

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