Bitcoin, Ethereum, Dogecoin Recoil On Fed Rate Hike Fears: Why This Analyst Thinks There Is Still 'Massive Opportunity'

Zinger Key Points
  • Cryptocurrencies drop as investors grapple with possible rate hikes
  • Bitcoin ROI rising as the apex coin dips, according to one trader
  • Ethereum victim of FUD, says market data platform Santiment

Bitcoin and Ethereum traded sharply lower on Monday evening as the global cryptocurrency market cap fell 5.9% to $1.8 trillion at press time.

 

Price Performance Of Major Coins
Coin 24-hour 7-day Price
Bitcoin BTC/USD -5.95% -14.8% $39,703.97
Ethereum ETH/USD -6.7% -15% $2,989.47
Dogecoin DOGE/USD -9.6% -9.2% $0.135

Top Gainers Over 24 Hours

Top 24-Hour Gainers (Data via CoinMarketCap)
Cryptocurrency 24-Hour % Change (+/-) Price
NEAR Protocol (NEAR) 16.1% $17.24
Mina (MINA) +12.1% $3.47
Ethereum Classic (ETC) +10.75% ​​$43.61

See Also: How To Buy Bitcoin (BTC)

Why It Matters: Both Bitcoin and Ethereum slipped below psychologically important levels. The apex cryptocurrency traded below the $40,000 mark, while Ethereum was below $3,000 at press time.

The yield on the benchmark 10-year U.S. Treasury bonds touched 2.793%, its highest level in more than three years, as investors awaited inflation data. The yield was also on track to rise for the seventh straight day, according to a Reuters report.

“Bitcoin is under pressure as the bond market selloff resumed, prompting a widespread selling of risky assets,” said Edward Moya, a senior market analyst with OANDA.

“Bitcoin is struggling here as rising rates are leading to a de-risking moment for many traders.  With no momentum from the Bitcoin 2022 conference, the focus shifts to inflation, and expectations are for a very hot report that will probably be the peak."

An April Reuters poll of 100 economists forecasts two half-point rate rises in 2022, which will be the first such move by the U.S. Federal Reserve since 1994. A majority of those polled expect a 50 basis points hike in May. Similarly, a 50 bps rate hike is also expected in June, according to a separate Reuters report

Amsterdam-based cryptocurrency trader Michaël van de Poppe said the correction in markets was bad.  “But one thing I know for sure, investing into [Bitcoin] in terms of [Return on Investment or ROI] is increasing heavily the more it dips," he added on Twitter.

Bitcoin hodlers, investors who buy and hold irrespective of price, are acumulating at discount and are buying their coins from short-term holders who are panicking, said Glassnode co-founders Jan & Yann. 

On the Ethereum side, there’s a lot of bearishness, according to market data platform Santiment. This is taking place amid falling market caps after a price resurgence in March.

Ethereum has seen a ton of "[Fear, Uncertainty, and Doubt or FUD] even prior to its price rally, and #buythedip opportunities may arise,” tweeted Santiment.

Read Next: This DeFi Crypto Shot Up 31% Last Week Even As Bitcoin, Ethereum, Dogecoin Struggled To Hold Their Own

Posted In: CryptocurrencyNewsMarketsMoversTrading IdeasBitcoindogecoinEthereum
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