Bitcoin and other major coins traded sharply lower over 24 hours leading up to Tuesday evening as the global cryptocurrency market cap shrank 5.6% to $1.8 trillion.
| Coin | 24-hour | 7-day | Price |
|---|---|---|---|
| Bitcoin BTC/USD | -5.7% | -7.8% | $38,154.22 |
| Ethereum ETH/USD | -6.5% | -8.9% | $2,814.31 |
| Dogecoin DOGE/USD | -12.2% | -2.7% | $0.14 |
| Cryptocurrency | 24-Hour % Change (+/-) | Price |
|---|---|---|
| Kyber Network Crystal v2 (KNC) | +4.3% | $5.26 |
| 0x (ZRX) | +4.1% | $0.82 |
| STEPN (GMT) | +0.2% | $3.31 |
See Also: Best USDC Interest Rates
Why It Matters: Bitcoin and Ethereum traded below psychologically important levels of $40,000 and $3,000 on a day when the Nasdaq closed lower by nearly 4% ask risk aversion set in ahead of major earnings releases.
“Bitcoin reversed lower as risk aversion returned to Wall Street, with tech stocks leading the decline. Russia's suspension of gas supplies to Poland sent risky assets, including Bitcoin sharply lower,” said Senior Market Analyst with OANDA, Edward Moya.
The dollar was the key beneficiary of the prevailing uncertainty. The dollar index, a measure of the greenback’s strength against six currencies, rose to a two-year high of 101.86, according to a Reuters report.
The dollar could see further upside due to a hawkish Federal Reserve, an aggressive stance against COVID-19 by China, and the volatile situation in Ukraine, according to Westpac analysts, reported Reuters.
Despite the strength of the U.S. unit, Bitcoin has been resilient, according to cryptocurrency trader Michaël van de Poppe.
The “remarkably little volatility” was also noted by Arcane Research in a newsletter, seen by Benzinga.
“The crypto market seems to be indecisive as the bitcoin price has been hovering around $40k for several weeks now, with traders waiting for the price to make a move before acting,” said the provider of the data-driven analysis.
The latest pullback in cryptocurrencies has “skyrocketed” investor interest in “buying the dip,” according to Santiment.
The financial market data platform tweeted that the S&P500 correlation is not working in favor of the cryptocurrency sector. Santiment said, “Crowd fear will play a large part in the two markets breaking apart from one another.”
Read Next: Ethereum L2 Coins Like Polygon (MATIC) Having A Rough Year While L1s Walk Toe-To-Toe, Says Research
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