Bitcoin, Ethereum, Dogecoin Spike on Fed Pivot Hopes: Apex Crypto Poised to Remain Stuck ‘In Consolidation Pattern,’ Says Analyst – Bitcoin (BTC/USD), Ethereum (ETH/USD), Dogecoin (DOGE/USD)
Major coins were buoyant on Monday night as the global cryptocurrency market capitalization rose 2.6% to $945 billion over the 24 hours to 10 p.m. 8:08 p.m. EDT.
| Coin | 24 hours a day | 7 days | Price |
|---|---|---|---|
| Bitcoin BTC/USD | 3.5% | 2.3% | $19,648.91 |
| Ethereum ETH/USD | 3.9% | -0.6% | $1,326.04 |
| Dogecoin DOGE/USD | 2.9% | -0.8% | $0.0604 |
| Cryptocurrency | 24-hour % change (+/-) | Price |
|---|---|---|
| Quant (QNT) | +8.45% | $140.08 |
| Maker (MKR) | +8.15% | $815.36 |
| Elrond (EGLD) | +7.9% | $52.05 |
See also: Best Crypto Debit Card
Why it matters: Cryptocurrencies rose along with other risk assets such as stocks on Monday, as the S&P 500 and Nasdaq ended their respective sessions 2.6% and 2.3% higher. At the time of writing, US stock futures were slightly in the green.
On Monday, the ISM manufacturing purchasing managers index (PMI) unexpectedly fell to 50.9 compared to 52.8 last month. Analysts expected a reading of 52.2.
On ISM number, Edward Moyaa senior market analyst at OANDA, said: “Fed tightening is working and starting to affect more parts of the economy.”
“Bitcoin is slightly higher as riskier assets rise after a global collection of weaker manufacturing data supports the idea that central banks need not remain as aggressive with monetary policy tightening,” Moya said, in a note seen by Benzinga.
“Bitcoin has outperformed stocks over the past couple of weeks, so today’s strong stock market moves shouldn’t come as a surprise. Despite some signs of downward pressure on inflation, Bitcoin is still poised to remain stuck in a consolidation pattern.
Moya said: “Calls for a Fed pivot are premature, and that should put a cap on how high risk assets are coming back here.”
Michael van de Poppe sees crucial resistance between $19,600 and $19,750 for Bitcoin. Should the apex coin break the resistance, it could touch $20,100 and then $20,700.
“For a long time, $19,300 is the perfect area to look for, but scaling a bit higher wouldn’t be a bad idea,” the cryptocurrency trader said.
Crucial resistance between $19,600-19,750 for #Bitcoin.
If it breaks, $20,100 and $20,700 next.
For longs, $19,300 is the perfect range to look for, but scaling a little higher wouldn’t be a bad idea.
Breaking above $19,600-19,750 is regaining the 200-week MA Market Cap. pic.twitter.com/RHuOZm46tp
— Michaël van de Poppe (@CryptoMichNL) 3 October 2022
Meanwhile, the correlation between Bitcoin and gold has reached its highest level in over a year, according to a note from Kaiko Research.
The cryptocurrency market data provider said that over the past year, Bitcoin has remained uncorrelated with gold, with a correlation that fluctuates between negative 0.2 and positive 0.2.
Bitcoin’s Correlation with Gold — Courtesy of Kaiko Research
“As the US dollar continues to strengthen, negatively impacting both crypto and gold, the correlation between the two assets has shifted.”
Gold is down almost 10% so far this year, while Bitcoin has fallen 58.8% in a similar period.
The dollar index, a measure of the dollar’s strength against a basket of six currencies, looks “relatively weak,” said Justin Bennett, a cryptocurrency trader. At the time of writing, the dollar index was down 0.05% at 111.69.
He tweeted that it gives stocks and cryptocurrencies “room to breathe.”
The $DXY still looks relatively weak.
Gives #stock and #crypto room to breathe. pic.twitter.com/EpJ3OBWJgK
— Justin Bennett (@JustinBennettFX) 3 October 2022
Bitcoin’s hashrate has reached a new all-time high in September against the backdrop of a raging bear market, according to Glassnode.
The chain-based analytics firm said in a blog post that the hashrate hit a record high of 242 exahash per second. The hashrate is a reference to the computing power used by Bitcoin’s network to process transactions.
Bitcoin’s average hash rate — courtesy of Glassnode
“To give an analogy for scale, this equates to all 7.753 billion people on Earth, each completing a SHA-256 hash calculation about 30 billion times every second. These are extraordinarily large numbers,” says Glassnode.
The increase in hashrate was credited to “more efficient mining hardware coming online and/or miners with superior balances holding a larger share of the hash power network” by Glassnode.
Pointing to an indicator known as the Hash Ribbon – which signals the health of the Bitcoin network, Glassnode said: “Nearly all historical hash ribbon developments have preceded greener pastures in the months that followed.”
Bitcoin Hash Ribbon — courtesy of Glassnode
Bitcoin supply continues to move away from exchanges – a sign that Santiment interpreted as traders being satisfied with their current holdings.
“With less than 9% of $BTC on exchanges for the first time since 2018, it’s a good sign of confidence for bulls,” the market intelligence platform said on Twitter.
#Bitcoin continues to see supply move away from exchanges as traders show further signs of being satisfied with their current holdings. With less than 9% of $BTC on exchanges for the first time since 2018, there is a good confidence for bulls. pic.twitter.com/d5rw8kHC5T
— Santiment (@santimentfeed) 3 October 2022
Read next: SEC Fines Kim Kardashian for ‘Illegally Touting’ Crypto Security: Here’s How Much It Will Cost Her
