Bitcoin (BTC) Cools After Weekend Rally, Analyst Says Watch for S&P 500 Moves
The two biggest coins were trading in the red on Sunday night as the global cryptocurrency market capitalization fell 1.05% to $1.08 trillion at press time.
| Coin | 24 hours a day | 7 days | Price |
|---|---|---|---|
| Bitcoin BTC/USD | -1.6% | 3.3% | $23,314.77 |
| Ethereum ETH/USD | -1.2% | 5.1% | $1,678.08 |
| Dogecoin DOGE/USD | -1.9% | 1.45% | $0.07 |
| Cryptocurrency | 24-hour % change (+/-) | Price |
|---|---|---|
| Filecoin (ROSE) | +25.1% | $9.94 |
| Internet computer (ICP) | +9.5% | $9.03 |
| Arweave (YEAR) | +6.2% | $15.58 |
See also: Best USDC interest rates
Why it matters: Cryptocurrencies, which were bullish over the weekend, appear to be losing momentum heading into another trading week.
Bitcoin hit a high of $24,572.58 over the weekend and has since fallen 5.1% from those levels.
Cryptocurrencies continue to align with stocks. S&P and Nasdaq futures were down 0.4% each at press time. Heading into a new trading week, investors will be keeping an eye on a flurry of earnings data and the payrolls report from the Bureau of Labor Statistics.
Cryptocurrency investors need to keep an eye on the S&P 500, where the area below 4,200 will be “critical”, according to the trader Justin Bennett.
Pointing to the correlation between Bitcoin and the S&P500, Bennett said that if there was a selloff on the index, the apex coin was “likely to follow” even if it takes a day or two to do so.
Why #crypto bulls need to be careful next week.
Watch today’s video at the link below and don’t forget to subscribe. $BTC #Bitcoin $ETH https://t.co/a5x06hmYo9
— Justin Bennett (@JustinBennettFX) 29 July 2022
USA Federal Reserve has room for more aggressive increases as personal income and consumption data remain strong, it noted Edward Moyasenior market analyst at OANDA.
“A couple more inflation and employment reports will dictate how the data-dependent Fed will behave after the summer,” Moya said, in a note seen by Benzinga.
Still, there are indications that cryptocurrencies may shed the “winter” mindset and prepare for a continued summer aid rally, he added.
“The ‘crypto winter’ may be over, and that’s what’s needed to allow flows back into space,” Moya said.
Michael van de Poppe noted the movement of the so-called altcoins which he said “broke out left and right.”
The cryptocurrency trader said short positions were “stopped or liquidated.” He said, “It’s the summer relief!”
#Altcoins breaking out left and right.
The moment they crack range, they begin to accelerate rather quickly;
– Short positions are stopped or liquidated.
– Rush buyers.Position yourself well, more #altcoins will follow.
It’s summer relief!
— Michaël van de Poppe (@CryptoMichNL) 30 July 2022
Investor sentiment indicator Alternative.Me’s “Crypto Fear & Greed Index” showed “Fear” heading into the new trading week. The index was at 33 at press time, while last week it was at 30 – a value of 0 means “extreme fear” and 100 “extreme greed.”
Decentralized finance pioneer Yearn.Finance’s (YRN) token crossed the $10,000 barrier for the first time since May 16 when the DeFi asset was decoupled from other altcoins, Santiment said.
#Annual budgetThe price has returned above $10,000 for the first time since May 16 which #DeFi the asset has disconnected #altcoin package. Keep an eye on the addresses that contain $1 million or more $YFIas there has been a decrease in their inventory. pic.twitter.com/djmoIgnJB3
— Santiment (@santimentfeed) 29 July 2022
The Market Intelligence platform tweeted: “Keep an eye on the addresses holding $1 million or more in $YFI as there has been a decline in their holdings.
Read next: Here’s why Bitcoin could explode higher if this trend confirms
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