Major coins traded mixed on Tuesday evening, while the global cryptocurrency market cap fell 0.8% to $973.7 billion at press time.
|coin||24 hours||7 days||Price|
|Bitcoin (CRYPTO: BTC)||-1.3%||-7%||$19,963.73|
|Ethereum (CRYPTO: ETH)||0.3%||-6.2%||$1,548.52|
|Cryptocurrency||24 hour % change (+/-)||Price|
|Close log (NEAR)||+6.5%||$4.28|
|NEXO (NEXO)||+3.5%||$1.02 USD|
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Why this matters: Bitcoin slipped below the psychological $20,000 mark on Tuesday, following a soft close in equity markets. The S&P 500 and Nasdaq both closed 1.1% lower, while their futures were flat at press time.
New York Federal Reserve Chairman John Williams took a hawkish stance on Tuesday. He told the Wall Street Journal that we will need policy tightening for some time.
“I think that since demand far exceeds supply, we need to get real interest rates … above zero,” he said. “We need a little restrictive policy to curb demand, and we’re not there yet.”
Edward Moyaa senior market analyst at OANDA, said risk aversion was “firmly back” and sent the top coin below $20,000.
“If the broad sell-off on Wall Street intensifies, Bitcoin looks very vulnerable here. If the S&P falls 3% over the next few days, that could be the catalyst that sends Bitcoin back towards the June lows,” Moya said in a note seen by Benzinga.
The dollar index, a measure of the greenback’s strength against six of its peers, fell on Tuesday. At press time, it was down 0.1% to 108.65 points.
Justin Bennett said the dollar index is holding below the 109.30 resistance, but a consolidation below that level is “usually a sign of imminent upside.”
Of $DXY holding below 109.30 resistance for now.
But consolidation below resistance is usually a sign of further upside.
— Justin Bennett (@JustinBennettFX) 30 August 2022
The retailer tweeted: “I think we’ll see 112-113 in September.” Bitcoin in particular has been moving in the opposite direction of the dollar index lately.
chartist Ali Martinez said that nearly 82,600 BTC worth $1.7 billion were withdrawn from major cryptocurrency exchanges last month.
— Ali Martinez (@ali_charts) 30 August 2022
Michael van de Poppe tweeted it Ethereum is headed for $2,200 as it approaches the transition to a proof-of-stake mechanism.
“I still expect this upward structure to continue regardless [Bitcoin] Reached $19,000 for liquidity or not,” the cryptocurrency trader said.
Decent gene testing in all markets takes place and $ETHfor example is still heading towards $2,200 as one of the biggest events is about to happen -> the merger.
I still expect a continuation of this upward structure, no matter what #Bitcoin $19K for cash sweep or not.
— Michaël van de Poppe (@CryptoMichNL) 30 August 2022
Amid a volatile trading week, “disbelief” is running high among Ethereum traders, he said shrine on twitter.
that #Ethereum Disbelief runs high among traders in a particularly volatile trading week. The audience has #short circuited, across exchanges, with the largest ratio since June 2021. Historically, price increases are more frequent under these conditions. https://t.co/DpG1E1TI9Y pic.twitter.com/e6xAWOXeFM
— Santiment (@santimentfeed) 30 August 2022
“The volume has the largest ratio across exchanges since June 2021 [geshortet]. Historically, price increases are more common under these conditions,” the market intelligence platform said.
Continue reading: Vitalik Buterin issues this important reminder ahead of the Ethereum merger
Buy, Hold or Sell – Your Ethereum Analysis from 31/08 gives the answer:
How will Ethereum evolve now? Is an entry worth it, or should investors rather sell? Find out the answers to these questions and why you should act now in the current Ethereum analysis.