Bitcoin, Ethereum Rebound, Dogecoin Outperforms On Musk's Twitter Takeover: Why Crypto Analysts Are 'Cautiously' Bullish

Zinger Key Points
  • Looming interest rate hike may not be making investors nervous anymore
  • A buy-the-fact event possible at next FOMC meeting in early May - GlobalBlock's Marcus Sotiriou
  • Elon Musk's Twitter takeover helps Dogecoin shoot up 19%

Bitcoin, Ethereum and Dogecoin traded higher over 24 hours leading up to Monday evening as the global cryptocurrency market cap rose 2.35% to $1.9 trillion.

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Price Performance Of Major Coins
Coin 24-hour 7-day Price
Bitcoin BTC/USD 2.9% -1.4% $40,447.36
Ethereum ETH/USD 3.6% -2.3% $3,009.73
Dogecoin DOGE/USD 19.8% 11.6% $0.16
Top 24-Hour Gainers (Data via CoinMarketCap)
Cryptocurrency 24-Hour % Change (+/-) Price
Dogecoin (DOGE) +19.8% $0.16
ApeCoin (APE) +15.5% $19.22
THORChain (RUNE) +8.7% ​​$8.46

See Also: Best USDC Interest Rates

Why It Matters: The specter of a 50-basis point interest rate hike may no longer be spooking investors, according to analysts. 

Marcus Sotiriou, an analyst with the U.K.-based digital asset broker GlobalBlock said in a note “I am still cautiously bullish. This is because the market was already expecting a 50-basis point rate hike before Jerome Powell’s announcement last week, so this news has already been priced in to a large extent. This could lead to a buy-the-fact event on the day of the FOMC meeting on 3rd-4th May.”

The apex coin has regained the $40,000 level as investors “get close to fully pricing in Fed tightening for the year,” said Edward Moya, a senior market analyst with OANDA.

However, Moya said that inflation needs to “show signs” of peaking soon for crypto traders to receive the greenlight to scale back in.

Bears may be losing their grip on the market. Cryptocurrency trader Michaël van de Poppe tweeted there is great bullish divergence on Bitcoin and “bouncing from higher timeframes level here.

Sharing the apex coin’s chart, he said, “​​Looks ready for bullish continuation.”

When prices of Bitcoin fell from $39,900 to $38,200, the holdings of Bitcoin whale addresses that contain 10,000 to 100,000 coins rose by nearly 2%, according to a tweet from chartist Ali Martinez. 

Monday’s top gainer was Dogecoin, which benefitted from the news of Tesla Inc TSLA CEO Elon Musk formalizing the purchase of Twitter, said Santiment on Twitter.

“We have historically seen that #memecoins benefit from [Musk] developments,” said Santiment.

Read Next: A Second Country Adopts Bitcoin As Legal Tender

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Posted In: CryptocurrencyNewsMarketsMoversTrading IdeasBitcoindogecoinEthereum
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