Bitcoin traded in the green on Thursday evening but failed to cross the key $40,000 barrier in intraday trading, as the global cryptocurrency market cap rose 1.2% to $1.8 trillion.
|Cryptocurrency||24-Hour % Change (+/-)||Price|
|SKALE Network (SKL)||+20.4||$0.19|
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Why It Matters: The apex coin and other major cryptocurrencies continue to shadow equities. On Thursday, the S&P 500 and Nasdaq bounced 2.5% and 3.1% higher after strong earnings numbers were reported by a number of major companies.
Economic data released on the same day showed that U.S. GDP fell 1.4% in the first quarter, while consumer spending rose 2.7% in the same period.
The fall in GDP is leading to hopes among analysts and others that Fed will moderate its hawkish tone — a move construed by them as positive for cryptocurrencies.
Cryptocurrency trader Justin Bennett said on Twitter that the chart structures he’s tracking indicate a bottom on May 4, when the Federal Reserve is due to hold its next meeting.
"A more dovish Fed sparks a relief rally from stocks and [cryptocurrencies]?” Bennett said.
Many of the chart structures I'm tracking point to a potential May 4th bottom.— Justin Bennett (@JustinBennettFX) April 28, 2022
May 4th is the next Fed meeting, and we just got the first negative US GDP print since 2020.
Down until then, and a more dovish Fed sparks a relief rally from stocks and #crypto?
Glassnode co-founders Jan & Yann tweeted that Fed’s action at next week’s policy meet “may already be priced in,” and any less severe outcomes could help Bitcoin touch above $42,000.
The most hawkish action by the Fed at next week’s meeting may already be priced in, and any less severe outcomes could drive #Bitcoin above $42k.— Negentropic (@Negentropic_) April 28, 2022
The #BTC aftermath of a strong $DXY https://t.co/NQT7fdOzwl pic.twitter.com/89pXlJeUGD
Meanwhile, the dollar continues to show extraordinary strength. The greenback touched a 20-year high against the yen on Thursday as the Japanese unit fell below the 130 mark. The dollar index, a measure of the dollar’s strength against six other currencies, rose as high as 103.93 intraday, reported Reuters.
Michaël van de Poppe tweeted on Thursday that the dollar would soon hit a peak, while Bitcoin would “break out.”
A subtle rebound in Bitcoin prices over the last couple of days means Bitcoin’s ratio of transactions taken in profit versus loss is rising, said Santiment on Twitter. The apex coin is seeing some profit-taking, according to the behavior analysis platform.
#Bitcoin's ratio of transactions taken in profit vs. loss is increasing after the subtle rebound these past couple days. Meanwhile, #Ethereum had some serious capitulation these past seven days, which explains its slight price dominance over $BTC. https://t.co/z8kmkneqT9 pic.twitter.com/4ApDsKmP2u— Santiment (@santimentfeed) April 28, 2022
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