Bitcoin (BTC) is falling, analysts say no rally until more interest rate hikes

Bitcoin fell below the $ 21,000 mark on Sunday night as the global market value of cryptocurrency fell 1% to $ 957.1 billion.

See also: How to get free NFTs

Why it matters: Cryptocurrencies fell Sunday night after showing strength over the weekend, with Bitcoin peaking at $ 21,600.64 during the period and Ethereum reaching $ 1,377.94.

Meanwhile, equities – risk assets, which cryptocurrencies have consistently overshadowed in recent times – were seen in the green during the press. S&P 500 and Nasdaq futures rose 0.2% and 0.3%, respectively.

“Risky assets have been knocked up enough and may be ready for a bounce here, but a sustained rise will not happen until the Fed has delivered a couple of massive rate hikes,” he said. Edward Moyaa senior market analyst at OANDA, in a note seen by Benzinga.

As we enter the new trading week, the mood around cryptocurrency is still weak. Alternative.me’s “Crypto Fear & Greed Index” flashed “Extreme Fear” at the time of press and was 20. Last week the index was 22. A value of 100 on the index represents “Extreme Greed”, while a value of 0 indicates “Extreme” Fear. “

Cryptocurrency trader Michael van de Poppe said it remains to be seen how Bitcoin will perform after the weekend as the $ 21,200 level has been rejected.

“Overall, the strength is still there, and I guess it’s happening further upside. Decisive barrier for now; $ 21K.”

It remains to be seen how #Bitcoin going to trade after the weekend, when $ 21.2K was rejected.

Overall, the strength is still there, and I guess it happens further upside.

Decisive barrier for now; $ 21,000. pic.twitter.com/8LBNOMl5kk

– Michaël van de Poppe (@CryptoMichNL) July 16, 2022

The on-chain analysis company Glassnode said that Bitcoin has seen two “huge” capitulation events this year, both of which caused the largest losses in the apex coin’s transfer volume since 2011.

One incident was the collapse of Terra Classic (LUNC), which caused a total loss of transfer volume of 538,000 BTC, and the other was a loss of 480,000 BTC transfer volume as the market traded during the 2017 all-time high.

2022 has seen #Bitcoin markets can withstand two huge capitulation events, both with the largest $ BTC transfer volume in losses since 2011.

When LUNA collapsed, the total transfer volume in losses was 538k $ BTC.

This was followed by 480k $ BTC when the market traded during 2017 ATH. pic.twitter.com/oKjBm4JgjE

– glassnode (@glassnode) July 17, 2022

On the Ethereum side, there is a buzz building around a rise in prices. The market information platform Santiment said that the second largest coin by market value increased by 29% in July.

Santiment also noted an increase in whale activity in the coin network in 1,000 ETH to 100,000 ETH address level since May.

#Ethereum has recovered quite well in July, up +29% for the month and +14% alone in the last 24 hours. In addition, there is an increase in the key 1k to 100k $ ETH address level since the beginning of May where 131 new whale addresses have appeared on the network. pic.twitter.com/ri8MhGIP0o

– Santiment (@santimentfeed) July 17, 2022

Chartist Ali Martinez said Ethereum appears to be “breaking out” and set a target of $ 1670 for the coin.

#Ethereum seems to break out, target $ 1670. $ ETH #ETH https://t.co/SeWDKDGDY9

– Ali Martinez (@ali_charts) July 16, 2022

Meanwhile, Ethereum Classic (ETC), considered to be a cheaper Ethereum game by some, was among the biggest intraday winners on Sunday night. The coin was up over 14% in 24 hours.

Read next: The Wolf Of Wall Street says he was wrong about Bitcoin: ‘I really hated crypto’