Bitcoin and other major coins failed to find upward momentum on Tuesday evening as the global cryptocurrency market cap fell 1.6% to $1.7 trillion at press time.
| Coin | 24-hour | 7-day | Price |
|---|---|---|---|
| Bitcoin BTC/USD | -1.8% | -0.9% | $37,786.60 |
| Ethereum ETH/USD | -2.4% | -1.1% | $2,783.57 |
| Dogecoin DOGE/USD | -0.6% | -6% | $0.13 |
| Cryptocurrency | 24-Hour % Change (+/-) | Price |
|---|---|---|
| Algorand (ALGO) | +8.6% | $0.67 |
| Helium (HNT) | +5.4% | $15.00 |
| Tron (TRX) | +5.5% | $0.072 |
See Also: Best Crypto Debit Cards
Why It Matters: Cryptocurrencies were lagging other risk assets like stocks, which flashed green ahead of an expected rate hike by the U.S. Federal Reserve.
S&P 500 and Nasdaq futures rose 0.1% and 0.2%, respectively, at press time. The Federal Reserve is expected to raise its fed funds target rate by half a percentage point on Wednesday. Also on the cards is a tapering of bond purchases by $95 billion a month, according to a CNBC report.
The greenback is under pressure ahead of the possible rate hike. The dollar index, a measure of the U.S. currency’s strength against six others, was unchanged at 103.46 at press time. The index is off of its Thursday highs of 103.93 when it touched a 20-year peak.
The simmering down of the dollar was construed as a positive for risk assets by cryptocurrency trader Michaël van de Poppe.
Van de Poppe sees the dollar index retreating to the 100 levels in a chart that he shared on Twitter. “Let's see how the Dollar is going to act after tomorrow,” said the analyst alluding to the conclusion of the Federal Open Market Committee meeting due Wednesday.
OANDA Senior Market Analyst Edward Moya said Bitcoin is in a “wait-and-see mode.”
“Bitcoin is struggling to muster up a rally as investors remain cautious about buying risky assets. Bitcoin needs a fresh catalyst as sentiment on Wall Street remains fairly downbeat,” wrote Moya, in a note seen by Benzinga.
Santiment pointed out that there are “significant” battles playing out between bulls and bears on both the Bitcoin and Ethereum sides.
Pointing to falling wedges on the charts of Bitcoin and Ethereum along with rising lows of Bitcoin active addresses, the behavior analysis platform said in a note, “We might see the final capitulation, which is a healthy sign.”
Read Next: PayPal CEO Wants To Double Down On Digital Wallets, Sees Them As The Future
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
