Text size
Crypto prices have collapsed in recent months, but prices have recently risen.
Dreamstime
Bitcoin
and other cryptocurrencies traded mixed on Tuesday, with prices faltering amid fragile investor sentiment following a stock market sell-off on Monday.
The price of Bitcoin rose slightly over the last 24 hours to $ 22,171, after moving as high as $ 22,700 on Monday. Bitcoin continues to stay around the highest levels since a mid-June sale led to the largest crypto as low as $ 18,000 from $ 30,000, changing hands to less than a third of its all-time high near $ 69,000 from eight months since.
“While Bitcoin saw positive momentum this week, it remains within reach when looking at a broader view, and is still struggling to cross the $ 22,000 resistance,” said Joe Diasquale, CEO of cryptocurrency manager BitBull Capital.
Following a recent cryptocurrency rally, market participants are pondering whether digital assets have hit rock bottom after a brutal period.
Bitcoin has just reached the worst quarter since 2011, a year in which it passed $ 1 for the first time, and the total market value of the cryptocurrency has collapsed to $ 1 trillion from almost $ 3 trillion in November 2021.
“For now, we are still interested in the bottom of this area when it comes to the price of Bitcoin, and are monitoring for accumulation during this range-bound movement,” said DiPasquale. “If Bitcoin does not break down from this area by the end of the month, post specifically [Federal Reserve’s monetary policy meeting ending July 27]we can see it as a strong sign of a potential long-term bottom. “
Cracks in the crypto ecosystem, such as the failure of the stablecoin Terra and the collapse of high-flying hedge funds and institutional borrower Three Arrows Capital, have put pressure on digital assets. But it also has macro pressure, and Bitcoin’s clear correlation to other risk-sensitive assets such as stocks.
Bitcoin has followed suit
S&P 500
and
Nasdaq
lower in recent months as investors have worried about the risk of recession. In the face of the highest inflation in decades, the Federal Reserve has already been aggressive in tightening monetary policy and raising interest rates – and risks causing a recession, which would be an unfriendly environment for risky games such as Bitcoin.
The shares rallied late last week, and initially looked set to continue on Monday before it all fell apart and the indices ended lower. But the risk sentiment seems to have made at least some of a permanent improvement.
“Wall Street enjoys a positive risk mood, which is good news for crypto,” said Edward Moya, an analyst at broker Oanda. “If Bitcoin continues to stabilize here over the next two weeks, the crypto winter may be over. Market positioning became extreme, and it could enable the bottom to be taken if the institutional money buys in. “
Beyond Bitcoin,
Ether,
the second largest crypto, gained 5.1% to $ 1,552. The token underlying the Ethereum blockchain network has declined by more than 40% in the past week, surpassing Bitcoin. Altcoins, or smaller cryptocurrencies, were also positive, too
Solana
up 7% and
Cardano
2% higher. Memecoins were more mixed, with
Dogecoin
around flat and
Shiba Inu
increases 3%.
Write to Jack Denton at [email protected]
