Major cryptocurrencies reversed their upwards course Wednesday evening as the global cryptocurrency market cap shrank 1.8% to $1.2 trillion at press time.
|Cryptocurrency||24-Hour % Change (+/-)||Price|
|Theta Network (THETA)||+5.7%||$1.31|
|FTX Token (FTT)||+3.4%||$28.07|
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Why It Matters: Cryptocurrencies and stocks continue to move in tandem, with Bitcoin and Ethereum price action remaining rangebound.
At press time, stock futures traded flat, with the S&P 500 and Nasdaq futures up 0.08% and 0.03%, respectively.
A newly introduced legislation in the U.S. Senate would classify the two-largest coins by market cap as commodities and give the Commodities Futures Trading Commission powers to regulate them.
“Even though this bill has not passed yet, it is very promising as it would provide regulatory clarity, which many institutions are seeking before they invest in the space,” said Marcus Sotiriou, an analyst with GlobalBlock, a United Kingdom-based digital asset broker.
Commenting on Bitcoin’s price action, Sotiriou said it remained rangebound between $28,000 and $32,000.
The “$31,500-$32,000 remains a key level of resistance to overcome for sustained upside,” wrote Sotiriou, in a note seen by Benzinga.
Even though Bitcoin and Ethereum lack movement, there is plenty of action visible in so-called altcoins like Cardano (ADA), Chainlink (LINK), and Helium (HNT), said Santiment in a tweet. These coins have shown major decoupling and are performing well, said the market intelligence platform.
#Crypto prices chopped wildly in the opening week of June, but the result has been mainly no movement for #Bitcoin and #Ethereum. #Altcoins, on the other hand, have shown major decouplings from one another, with $ADA, $LINK, and $HNT performing well. https://t.co/5qQduGwtxy pic.twitter.com/MQJw3h9Gqc— Santiment (@santimentfeed) June 8, 2022
On-chain analyst Willy Woo said that Bitcoin is “attempting a bottom structure, which has not yet confirmed.” The analyst added that there is strong spot demand from hodlers, most likely institutions.
“None of this matters if macro markets crap themselves. If that was off the table, this structure looks pretty good,” said Woo.
SUMMARY:— Willy Woo (@woonomic) June 8, 2022
Overall the BTC is attempting a bottom structure which has not yet confirmed. Locally we are seeing strong spot demand by hodlers, likely institutional.
None of this matters if macro markets crap themselves. If that was off the table, this structure looks pretty good.
Woo said the bear market was being driven by futures market hedging to the dollar, and it was not the hodlers that were selling — rather they had been accumulating. The analyst said futures hedging has now subsided.
Taking a fundamental demand and supply view, notice this bear market was driven by futures markets hedging to USD (red arrow), it was not from hodlers selling. Hodlers were accumulating for the most part.— Willy Woo (@woonomic) June 8, 2022
This futures hedging has now subsided. pic.twitter.com/UE0oXfec6p
Cryptocurrency trader Justin Bennett tweeted, “A few markets have broken below critical support on the 4h timeframe. The next 24 hours could get bumpy again.’
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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