Bitcoin and Stocks Fall; Analysts See More Downside Risk

Hello, I’m Jimmy He, I’m here to take you to today’s crypto market highlights and news.

Bitcoin was bullish in Friday’s trading, even breaking $22,000 earlier in the day before approaching $21,500 the previous day.

The largest cryptocurrency by market cap was trading at roughly $21,800, which is roughly flat, although it has been more on the green side over the past 24 hours.

Bitcoin has so far had a rare week of gains, climbing over 14% since Monday, and has been swept up with the same optimism that has soared stocks this week amid encouraging signs that the US Federal Reserve will not give up in its battle against inflation. Bitcoin rose three days in a row.

Still, the rally did little to impress a number of analysts who had yet to see evidence of a long-term price surge that would push bitcoin beyond the current upper threshold in the low $20,000 range last month.

“BTC/USD has gained more than 17% since the start of the month, which seems like an impressive result, but only at first glance,” FxPro senior market analyst Alex Kuptsikevich said in an email about the bitcoin/USD pair. “The problem is that Bitcoin dropped as much as possible by the end of June and the current significant increase is a rebound to levels just three weeks ago.”

Kutpsikevich said that BTC is still below its 200-week average, and Friday morning sales indicate there is still “significant oversupply from sellers.”

Bitcoin is down over 50% from its early 2022 levels and over 68% from its all-time high in November 2021.

Analysts at crypto exchange Bitfinex said on Friday that this week’s rally of the S&P 500 and the recovery in tech shares have boosted risk appetite and bolstered the price of BTC despite the recent wave of liquidation and solvency problems in the crypto space.

Bitfinex told CoinDesk, “It will be interesting to see if a vibrant cryptocurrency market continues to buy more this month over the past 24 hours.”

Most altcoins rallied on Friday as Internet Computer’s ICP topped the charts, up 7% in the past 24 hours. Ether (ETH), the second largest cryptocurrency by market cap, fell 0.4% over the same period.

latest prices

Bitcoin (BTC): $21,800 +0.9%

Ether (ETH): $1,238 +0.2%

S&P 500 daily close: 3,899.38 -0.1%

Gold: $1,741 per ounce +0.2%

Ten-year Treasury yield daily close: 3.10% +0.09

Bitcoin, ether and gold prices are received at approximately 16:00 New York time. Bitcoin is the CoinDesk Bitcoin Price Index (XBX); Ether is the CoinDesk Ether Price Index (ETX); Gold is the COMEX spot price. Information on CoinDesk Indices can be found at coindesk.com/indices.

Trading volume on Binance, the world’s largest crypto exchange by trading volume, soared after the worldwide zero-fee policy was implemented on Friday morning. Zero trading fees for 13 crypto pairs started at 14:00 UTC (10:00 ET) on Friday. The move caused a boom in trading on the exchange as the bitcoin/tether (USDT) spot volume soared to 320,000 coins within hours. The exchange hasn’t seen such high volume for even a full day since March 2020.

Binance CEO Changpeng Zhao attributed the increase to people trying to earn VIP levels through high trading volumes. “We will exclude BTC trading from VIP calculations” tweeted. “Remove all incentives to commercial wash. Announcement with details coming soon.” A washing trade It occurs when an investor buys and sells an asset with the aim of artificially inflating the price. Read more here.

Sector classifications, Digital Asset Classification Standard (DACS)was developed by CoinDesk Indices to provide a reliable, comprehensive and standardized classification system for digital assets. this CoinDesk 20 is the ranking of the largest digital assets by volume on trusted exchanges.

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