Bitcoin, ether, and other major coins rose Thursday night as fears of a bear market in stocks and a weaker dollar boosted the top coin’s appeal. The global cryptocurrency market cap increased by 4.8% to $1.3 trillion.
| coin | 24 hours | 7 days | Price |
|---|---|---|---|
| Bitcoin BTC/USD | 5.4% | 4.8% | $30,304.18 |
| ether ETH/USD | 5.3% | 3.1% | $2,018.07 |
| Dogecoins DOGE/USD | 3.6% | 4.9% | $0.09 |
| cryptocurrency | 24-hour % change (+/-) | Price |
|---|---|---|
| Kyber Network Crystal V2 (KNC) | +21.2% | $2.66 |
| Chain (KDA) | +16.4% | $2.67 |
| helium (HNT) | +12% | $91.63 |
See also: Best Crypto Debit Cards
What happened: The S&P 500 fell almost 19% below its all-time high set in early 2022; The index is now hovering near bear market territory. A 20% decline from all-time highs is interpreted by many experts as a bear market.
S&P 500 and Nasdaq futures are trading up 0.4% and 0.7%, respectively, at press time.
The dollar index, a gauge of the greenback’s strength against six other currencies, fell 0.05% to 103.74, while 10-year US Treasury yields fell to 2.772, their lowest since late April, according to a Reuters report .
Lead Market Analyst at OANDA Edward Moya Noted the dollar’s “freefall” as investors bought government bonds amid fears the economy was heading for a “difficult patch”.
“A weaker dollar and bear market stock fears make bitcoin attractive again,” Moya said in a note seen by Benzinga.
“It appears that the aftermath of the whole stablecoin drama that sent cryptos sharply lower is finally fading. Bitcoin seems poised to consolidate here, but bulls should be happy to see prices aren’t mimicking what’s happening with the stock market.”
Points to bitcoins Relative Strength IndexRekt Capital tweeted Thursday that the indicator is entering a “period that has historically preceded outsized returns for long-term investors.”
The cryptocurrency trader said previous reversals from this level were seen in January 2015, December 2018 and March 2020.
#BTC RSI is now entering a phase that has historically preceded outsized returns for long-term investors
Previous reversals from this area include January 2015, December 2018 and March 2020
All bear market bottoms$BTC #Crypto #Bitcoin pic.twitter.com/jofNT7gnsT
— Rekt Capital (@rektcapital) May 19, 2022
Michael van de Poppe tweeted that there is a 20% to 25% chance of the market due to the recent “major crash.” The analyst valued Bitcoin at around $34,000 to $36,000.
The total market cap of #crypto swept the lows at $1.1 trillion and appears poised for some relief to the upside.
There seems to be a chance of 20-25% relief across the market here due to the violent crash.
#Bitcoin is probably around $34,000 to $36,000. pic.twitter.com/rge5JM1Nlu
— Michaël van de Poppe (@CryptoMichNL) May 19, 2022
The futures market has a different story to tell. Bitcoin’s put/call ratio hit a 12-month high, with open interest hitting a 12-month high of 0.72 this week. This is a bearish indicator, according to Delphi Digital.
BTC Put/Call Ratio to Open Interest and Volume – Courtesy of Delphi Digital
The on-chain analytics firm said the put/call ratio reached as high as 0.96 before Bitcoin’s price dropped over 50% in May 2021.
The put/call is a measure of the amount of put purchases relative to calls. A high ratio means investors are speculating whether Bitcoin will sell off further, or it could indicate investors are hedging their portfolios against a downturn.
Continue reading: Jack Dorsey outlines Block’s Bitcoin-centric future and says the company is no longer just a payments firm
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