Bitcoin, Ethereum, Dogecoin Hold It Together Amid Tech-Stock Meltdown: Is Crypto ‘Near Bottom?’ – Bitcoin (BTC/USD)
Major coins traded mixed on Thursday evening as the global cryptocurrency market cap rose 0.5% to $947 billion at 8:11 PM EDT.
| Coin | 24 hours a day | 7 days | Price |
|---|---|---|---|
| Bitcoin BTC/USD | 0.4% | 0.8% | $19,556.06 |
| Ethereum ETH/USD | -0.5% | 0.5% | $1,355.99 |
| Dogecoin DOGE/USD | 0% | 1.8% | $0.06 |
| Cryptocurrency | 24-hour % change (+/-) | Price |
|---|---|---|
| XRP (XRP) | +7.5% | $0.5 |
| Stellar (XLM) | +6.1% | $0.11 |
| EOS (EOS) | +4.9% | $1.21 |
See also: Best Crypto Debit Card
Why it matters: Although Ethereum was trading in the red, major coins appeared resilient in the face of a technical meltdown on Thursday in the stock market. The Nasdaq closed over 300 points lower intraday, while the S&P fell nearly 80 points.
Nasdaq and S&P 500 futures were marginally higher at 0.3% each at time of writing.
“Bitcoin’s correlation with tech stocks remains, but it’s not breaking as badly as it has for most of this cycle,” said OANDA Senior Market Analyst Edward Moyain a note seen by Benzinga.
“Bitcoin remains above the $19,000 level despite a nearly 4% drop in the Nasdaq. It appears that Wall Street believes crypto is near the bottom and will become an attractive diversification strategy once the peak in Treasury yields is in place.”
Moya noted that “calls for another crypto crash have been somewhat quiet.” He said Bitcoin has “huge support” above the $18,000 mark.
Market information platform Sentiment said that if the correlation between Bitcoin and stocks decreases, then “this is very encouraging.”
#Bitcoin have been stuck around $19.4k and #Ethereum to $1340 today. But the story is the fact that they do it without support from #SP500, which is down -2.4%. If the correlation decreases between #crypto & #stockthis is very encouraging. pic.twitter.com/kIpGjnqz9w
— Santiment (@santimentfeed) 29 September 2022
GlobalBlock analyst Marcus Sotiriou pointed to on-chain analytics, which he said showed some bullish signs regarding the apex crypto.
Comparing long-term holder (LTH) realized price to short-term holder (STH) realized price, he said that the realized price of STH had only crossed the realized price of LTH three times in Bitcoin’s history until last weekend, when it crossed again.
Bitcoin — cost base analysis, courtesy GlobalBlock Via Glassnode
“The other times this happened, it indicated a bottoming process. We can keep an eye on when the STH band crosses back above the LTH band to potentially signal a bull market restart, if Bitcoin follows the same pattern as previous bear markets,” Sotiriou said .
Glass node tweeted Thursday that LTH profitability has fallen to levels seen during the lowest months of the December 2018 bear market.
“Long-term holders are selling $BTC at an average loss of 42%, indicating that LTH used coins have a cost basis around $32k,” the on-chain research firm said.
#Bitcoin Profitability for long-term owners has fallen to levels last seen at the depth of the December 2018 bear market.
Long term owners are selling $BTC with an average loss of 42%, indicating that LTH used coins have a cost basis around $32k.
Live Chart: pic.twitter.com/wEnfVzEs9I
— glassnode (@glassnode) 29 September 2022
The UK’s economic woes continue to affect Bitcoin. The Apex coin’s traded volume rose 11x on Thursday, according to Michael van de Poppe.
The cryptocurrency trader tweeted: “Bitcoin is the way out. But before most people realize this, it will be too late. That’s why the time to accumulate is now.”
#Bitcoin traded volume did an 11x in the UK on the day.
Bitcoin is the way out.
But before most people realize this, it will be too late.
That is why the time to accumulate is now.
— Michaël van de Poppe (@CryptoMichNL) 29 September 2022
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