Bitcoin, Ethereum, Dogecoin Weaken, While Altcoins Continue Soaring: What's Going On?

Zinger Key Points
  • Risk assets like cryptocurrencies and stocks continue to face challenges linked to geopolitics and inflation
  • The odds of a short-term correction are beginning to increase, according to one analyst
  • Altcoins are still exhibiting strength despite the weakness seen in major coins

The two largest digital coins, Bitcoin and Ethereum, traded lower Thursday night as the global cryptocurrency market dropped 2.5% to $2.1 trillion. 

Price Performance Of Major Coins
Coin 24-hour 7-day Price
Bitcoin BTC/USD -3.6% 3.65% $45,507.27
Ethereum ETH/USD -3.25% 6.1% $3,287.11
Dogecoin DOGE/USD -3.1% 1.8% $0.14
Top 24-Hour Gainers (Data via CoinMarketCap)
Cryptocurrency 24-Hour % Change (+/-) Price
STEPN (GMT) +23.4% $2.46
IOST (IOST) +20.9% $0.04274
Theta Network (THETA) +10.9% ​​$4.33

See Also: How To Buy Bitcoin (BTC)

Why It Matters: U.S. equities slumped on Thursday, with the S&P 500 and Nasdaq dropping 1.6% and 1.5%, respectively. 

The S&P 500 had the worst quarterly drop in two years and declined 4.9% for the period, while the tech-heavy Nasdaq dropped 9.1% in the preceding three months.

Bitcoin and Ethereum have fallen 1.7% and 11%, respectively, in the past 90 days, but have posted gains of 2.3% and 10.5% in the last 30 days.

The fall in risk assets has taken place amid rising inflation and a military conflict between Russia and Ukraine. 

On Thursday, personal consumption expenditures (PCE), a price metric favored by the U.S. Federal Reserve, was released. PCE, excluding food and energy, rose by 0.4% as expected, according to a report from Reuters.

However, the PCE number was higher than last month and it is expected to continue going higher, according to Ken Polcari, a managing partner at Kace Capital Advisors.

“That only solidifies [Fed Chair] Jay Powell and the Fed’s position to be more aggressive so there are going to be multiple 50 basis point hikes,” said Polcari.

Thursday's action on Wall Street could keep the pressure on cryptocurrencies, according to OANDA Senior Market Analyst Edward Moya. 

“Bitcoin long-term options bets are growing, but it looks like we might have to wait a while until a new catalyst emerges to take out the recent highs,” wrote Moya in a note seen by Benzinga. 

On Thursday, cryptocurrency analyst Michaël van de Poppe tweeted, “Maybe the odds of a short-term correction are starting to increase.”

Despite Bitcoin cooling down, altcoins are still resurgent, according to cryptocurrency investor Quinten Francois.

Glassnode co-founders Jan & Yann tweeted that Bitcoin is “looking strong” and making its way towards $48,000 resistance.

 

“Our signals turned bullish as $193mn flowed into [Bitcoin], [Ethereum], and alts last week,” said Jan & Yann.

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Posted In: CryptocurrencyNewsMarketsMoversTrading IdeasBitcoindogecoinEthereumRussia-Ukraine Crisis

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