Bitcoin and other major coins traded higher Sunday evening as the global cryptocurrency market cap rose 1.6% to $2 trillion.
|Cryptocurrency||24-Hour % Change (+/-)||Price|
|Shiba Inu (SHIB)||+22.1%||$0.00003|
|Axis Infinity (AXS)||+16.2%||$68.21|
See Also: How To Buy Bitcoin (BTC)
Why It Matters: The dollar fell 1.8% last week, which is one of its largest percentage declines since November 2020, according to a Reuters report.
In a recent video, cryptocurrency trader Justin Bennett talked about the inverse relationship between the dollar index and Bitcoin.
“Every single time Bitcoin is topped out at the end of each bull cycle the dollar has bottomed,” said Bennett.
On Friday, Bennett tweeted that if the Dollar Index — a measure of the greenback’s strength against a basket of six currencies — closes the week below last week’s open at 95.63 “we have a weekly bearish engulfing.
The dollar index rose 0.1% to 95.446 on Friday, as per Reuters.
Now that you know why the $DXY matters for #crypto, here's the latest...— Justin Bennett (@JustinBennettFX) February 3, 2022
If the DXY closes this week below last week's open at 95.63, we have a weekly bearish engulfing.
The last time this occurred at a multi-year swing high was March 2020, when $BTC started its 1,500% rally. https://t.co/36Jy6Zug5c pic.twitter.com/rDobpvGCSz
The reason for the dollar index’s appreciation on Friday was the U.S. nonfarm payroll report which indicated that 467,000 jobs were added last month, according to Reuters.
Edward Moya, OANDA’s senior market analyst said that the nonfarm payroll report was a “shocker” which sent Treasury yields higher as expectations of a more aggressive monetary tightening rose.
“Bitcoin may have difficulty breaking above the $40,000 level if Wall Street grows confident that the Fed will raise rates by a half point in March,” wrote Moya on Friday.
Notably, even though the apex coin traded above the $40,000 mark on an intraday basis on Sunday, volumes remained thin throughout the weekend.
Pseudynomyous cryptocurrency analyst Altcoin Sherpa tweeted that it is likely that BTC will see a lower high in the mid $40,000 range.
$BTC: Its highly likely that the lower high will come in; my guess is mid 40ks. A lot of confluence w. the 200D EMA / PoC on volume profile. The key to me is where the low is set- if it's a higher low or lower low, that's the question. #Bitcoin pic.twitter.com/3aCHXmXruf— Altcoin Sherpa (@AltcoinSherpa) February 6, 2022
Meanwhile, Ethereum saw the $3,000 mark again after two weeks of trading under that level. The amount of unique Ethereum addresses transacting also touched a two-month high, said Santiment, a financial market data and content platform, on Twitter.
On a much more lively than usual Saturday, #Ethereum #hodlers were happy to see the #2 market cap asset regain the $3,000 threshold for the first time in over 2 weeks. The amount of unique $ETH addresses transacting has hit a 2-month high as well. https://t.co/c9I91wiDX7 pic.twitter.com/T9RCuW2qfb— Santiment (@santimentfeed) February 6, 2022
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