Bitcoin, Ethereum, Dogecoin Spike Alongside Stronger Stocks: Time For Crypto To Finally 'Play Catch-Up?'

Zinger Key Points
  • Bitcoin, Ethereum, Dogecoin rally along with stock futures
  • Investor sentiment sees improvement in fresh trading week
  • Even as Bitcoin on-chain activity remains muted, hodlers of the apex coin remain unfazed

Bitcoin and Ethereum rallied sharply at press time on Monday evening as the global cryptocurrency market cap spiked 7.5% to $1.3 trillion.

Price Performance Of Major Coins
Coin 24-hour 7-day Price
Bitcoin BTC/USD 7.8% 8.4% $31,653.45
Ethereum ETH/USD 10.3% 0.6% $1,993.84
Dogecoin DOGE/USD 6.5% 5.2% $0.09
Top 24-Hour Gainers (Data via CoinMarketCap)
Cryptocurrency 24-Hour % Change (+/-) Price
WAVES (WAVES) +75.6% $7.72
Axie Infinity (DCR) +47% $26.92
Helium (HNT) +27.9% ​​$9.38

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Why It Matters: The apex coin traded over $31,000, while Ethereum, the second-largest coin by market cap, traded just below the psychologically important $2,000 level at press time. During intraday trading, BTC and ETH touched $31,949.63 and $2,005.49, respectively.

The gains seen in stocks last week appear to be permeating to cryptocurrencies. At press time, the S&P and Nasdaq futures traded 0.1% and 0.4% higher, respectively. 

Risk assets like stocks could get a boost this week as China begins reopening the country due to a drop in COVID-19 cases. Both Beijing and Shanghai are easing restrictions, reported Voice of America.

Cryptocurrency trader Justin Bennett noted that Bitcoin and the S&P 500 have been positively correlated for some time now. He tweeted that while the S&P had an impressive rally last week, Bitcoin was “still sleeping.”

“Looks like [Bitcoin] is about to play catch-up. This would put it in the mid $30k range at current S&P levels.”

Investor sentiment, as measured by’s “Crypto Fear & Greed Index,” still remains weak. The index flashed “Extreme Fear” at press time and had a value of 16. However, it has improved over last week when it stood at 12.

The "Crypto Fear & Greed Index" By 

Old hands have reduced their Bitcoin spending behavior, said chartist Ali Martinez, citing an on-chain metric known as entity-adjusted dormancy flow. 

The entity-adjusted dormancy flow is a variation of dormancy, which is a marker of a coin’s lifespan. Analysts use these measures to call out market bottoms and explore long-term market trends.

“A dormancy value of 250K or lower, suggests [Bitcoin] is in a good historical buy zone,” tweeted the chartist.

Martinez said that Bitcoin dormancy value is hovering below 250,000 for the past 6 months and this is a “buy the dip” hint. 

Meanwhile, Bitcoin on-chain activity, which plateaued in September has yet to pick up pace. Glassnode said in a recent note that the Hodler class are the only ones that remain.

The on-chain analysis firm noted that after the Terra (LUNA) meltdown entities holding less than 100 BTC soaked up coin volume sold in distress by the Luna Foundation Guard.

Bitcoin Supply Held By Entities Who Hold  Less Than 100 BTC — Courtesy Glassnode

“Alongside a majority of long-term holders, an increasingly large volume of BTC appears HODLed and acquired at these lower prices. This trend, unless disrupted, can be expected to propel Long-Term Holder supply above its ATH over the coming months,” said Glassnode, in a note seen by Benzinga.

Meanwhile, over the long Memorial Day weekend, the beleaguered Terra project attempted a resurrection as it launched a new blockchain and airdropped LUNA 2.0 tokens to holders.

Terra now represents the 2.0 version of the token and is up 60.6% at $9.32, while Terra Classic (LUNC) traded 16.5% higher at 0.000123 at press time.

Read Next: Massive Losses? Not For These Funds Which Made Millions On Their Terra (LUNA) Investment

Posted In: BitcoindogecoinEthereumCryptocurrencyNewsTop StoriesMarketsMoversTrading Ideas

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