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'Fear' Grips Bitcoin, Ethereum, Dogecoin, Shiba Inu: Is A Rising US Dollar Spelling Woes For Cryptos?

Major coins traded lower on Monday evening as the global cryptocurrency market capitalization decreased 2.5% to $2.54 trillion.

What Happened: Bitcoin (CRYPTO: BTC) fell 3.1% to $56,419.92 over 24 hours. It has declined 10.28% over a seven-day period.

Ethereum (CRYPTO: ETH) was down 2.5% at $4,122.03 over 24 hours. The coin has fallen 8.07% for the week. 

Meme cryptocurrency Dogecoin (CRYPTO: DOGE) slipped 1.48% to $0.22 over 24 hours. It has shrunk 12.93% over the last seven days.

DOGE-rival Shiba Inu traded 0.7% lower at $0.00004326 over 24 hours. For the week it has plunged 17.59%.

The top gainers over 24 hours were Voyager Token, The Sandbox, and Elrond, as per CoinMarketCap data.

Voyager Token soared 34.73% to $5.06, The Sandbox rose 18.2% to $4.95, and Elrond appreciated 11.51% to $491.10. 

The Sandbox and Elrond touched their respective all-time highs of $5.24 and $494.89 on Monday.

See Also: How To Buy Bitcoin (BTC)

Why It Matters: Greed, which dominated as the sentiment in the cryptocurrency market last week has transformed to Fear, as per the Fear & Greed Index, by Alternative.

Amsterdam-based trader Michaël van de Poppe noted that Bitcoin has rejected the $60,000 level and is trying to find “any support.” As per Van de Poppe, that support could be at levels as low as $43,000-$46,000.

Van De Poppe said separately in a newsletter that a key factor in Bitcoin’s decline was the rising dollar.

“If the Dollar succeeds in this run upwards, a further corrective move could be taking place on Bitcoin’s price as that correlation is one of the heaviest in the markets.”

On Monday, President Joe Biden announced that he will nominate U.S. Federal Reserve Chair Jerome Powell for a second term, which is construed to be a positive for the greenback.

“The dollar popped alongside short-end Treasury yields after reports the White House is planning to stick with Fed Chair Powell,” noted Edward Moya, a senior market analyst with Oanda.

“Bitcoin is under pressure as the dollar and US equities rally following President Biden’s decision to stick with Jerome Powell to run the Fed,” Moya said in an emailed note.

As per the analyst, inflation hedges did not fare well on Tuesday and the apex cryptocurrency was “ripe for a pullback.” 

Powell’s colleague based in the United Kingdom, Craig Erlam, wrote separately that Bitcoin’s failure to move above $60,000 may be a “bearish signal.”

“We may not be seeing that now but a failure to get back above $60,000 suggests 20% may not be as bad as it’s going to get.”

Numbers tweeted by CNBC host Ran Neuner on Monday indicate that Solana has seen more new projects by chain in the last 60 days than Ethereum by a large margin even if both L1 and L2 projects are considered together.

Read Next: Dogecoin And Shiba Inu Nowhere On The Map But These Coins Struck Massive Gains Past Week — With One Up Over 280%

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