Markets
Bitcoin, Ethereum and Dogecoin Fall as Inflation Fears Grip Investors: Fewer King Cryptos Available to the Masses, a ‘Huge’ Bull Market Inevitable, Analyst Says
Major cryptocurrencies fell slightly on Wednesday as investors remained reluctant to allocate funds to the risky asset class due to fears over inflation and interest rates.
| Cryptocurrency | Earnings +/- | Price (recorded at 8:30 pm EDT) |
| Bitcoin (CRYPTO: Bitcoin) | -1.03% | $67,639.59 |
| Ethereum (CRYPTO: ET) | -1.95% | $3,679.83 |
| Dogemoneta (CRYPTO: DOGE) | -0.59% | $0.1642 |
What happened: Bitcointhe market benchmark indicator remained unstable in the $67,000 zone, while the second largest cryptocurrency, Ethereum, fell below $3,800, effectively reversing all the gains made thanks to the spot ETF hype last week.
The market crash led to $152 million worth of positions being liquidated in the past 24 hours, with long liquidations accounting for 71% of the total. Ethereum led liquidations of $38.55 million.
Open interest in Bitcoin futures fell 0.45% over the past 24 hours, while the Ethereum futures market saw a steeper decline of 2.26%.
The price drop changed the sentiment of the derivatives market, as the number of traders making bearish bets on Bitcoin increased significantly compared to those taking bullish long positions.
Best profit (24 hours)
| Cryptocurrency | Earnings +/- | Price (recorded at 8:30 pm EDT) |
| Not money (NOT) | +14.92% | $0.01053 |
| World currency (WLD) | +7.29% | $5.03 |
| Bitget token (BGB) | +6.01% | $1.32 |
The global cryptocurrency market capitalization stands at $2.53 trillion, after a decline of 1.39% in the last 24 hours.
The stock market fell lower on Wednesday. THE Dow Jones industrial average it slipped 411.32 points, or 1.06%, to end the trading session at 38,441.54. THE S&P500 fell 0.74% to close at 5,266.95, marking the first negative day in the last three sessions. The one focused on technology Nasdaq composite it closed down 0.58% at 16,920.58.
Wednesday’s decline was led by rising Treasury yields, with the 10-year Treasury yield trading at 4.62% as of 8:50 pm EDT. The upward move comes ahead of key data on Friday’s Personal Consumption Expenditures Price Index, seen as a gauge of inflation in the U.S. economy.
See more: Best Cryptocurrency Scanners
Analyst Notes: Well-known cryptocurrency trader Crypto Rover drew attention to the rapid contraction in supply of Bitcoin on exchanges, a market shift that will likely aid a “huge” bull market.
Leading analyst Michael van de Poppe had a slightly different view, highlighting Ethereum spot ETF trading as a major bullish factor in the days ahead.
“We are in the phase where Bitcoin is consolidating and Altcoins are waiting for their breakout,” he said. “For me, the trigger will be the Ethereum ETF listing.”
Where are we in the cycle?
We are at the stage where #Bitcoin consolidates and #Altcoins they are waiting for their breakup to come.
For me, the trigger will be the Ethereum ETF listing.
From there, it could go pretty fast in a good way.
— Michaël van de Poppe (@CryptoMichNL) May 29, 2024
On-chain analytics company Most Holy observed a notable increase in wallets containing at least 10 Bitcoin over the past five months.
Historically considered a key signal in the industry, accumulation by this group precedes price increases. Conversely, when they sell off, extended bear markets follow.
🐳📊 Historically, one of the main leading indicators of cryptocurrencies is collective holdings of wallets with at least 10 Bitcoin (exchanges or otherwise). When they accumulate, cryptocurrencies increase. When they dump, extended bear markets arrive. What do you think of this graph? pic.twitter.com/U7ZBrdvaUi
Photo by Fernando Cortes on Shutterstock
Read next: Bitcoin’s new all-time high depends on this macro indicator: 10x research
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