Bitcoin, Ethereum, Dogecoin Rise Despite Hawkish Fed: Analyst Says Wait For 'The Bigger Drop' Will Be Longer

Zinger Key Points
  • Cryptocurrencies shrug off signs of impending recession — move higher.
  • 'Everyone will have to wait longer for the big drop,' says notable trader on Bitcoin.
  • Ethereum fall caused by more than just macro environment, says BlockFi trader.

Bitcoin and Ethereum traded in the green Thursday evening, as the global cryptocurrency market cap rose 4.9% to $943.7 billion at 8:19 p.m. EDT.

Price Performance Of Major Coins
Coin 24-hour 7-day Price
Bitcoin BTC/USD 4.7% -1.6% $19,386.98
Ethereum ETH/USD 6.6% -9.6% $1,330.52
Dogecoin DOGE/USD 4.2% 1.6% $0.06
Top 24-Hour Gainers (Data via CoinMarketCap)
Cryptocurrency 24-Hour % Change (+/-) Price
XRP (XRP) +22.1% $0.5
Chiliz (CHZ) +19.1% $0.3
UNUS SED LEO (LEO) +14.1% ​​$4.92

See Also: How To Get Free Crypto

Why It Matters: Major cryptocurrencies moved in the opposite direction of stocks, which closed lower on Thursday.

The S&P 500 and Nasdaq closed 0.8% and 1.4%, respectively. At the time of writing, U.S. stock futures were seen marginally higher.

Meanwhile, 10-year Treasury yields rose from four-month lows seen in early August as investors expect the U.S. Federal Reserve will continue to maintain its hawkish pose and keep rates higher even if it affects economic growth, reported Reuters.

The yield curve between the 2-year and 10-year treasuries is the most inverted since the year 2000. The inversion reached as far as negative 58 basis points, which shows the rising anxiety about an upcoming recession.

“Bitcoin is doing just fine as the global bond market selloff heats up. Recently, it seems Bitcoin would be sharply lower if Wall Street sees Treasury yields skyrocket and stocks sell-off, but that is not happening. Bitcoin’s bottom could be in place if throughout this market volatility it can hold the $18,000 level,” said Edward Moya, a senior market analyst with OANDA, in a note seen by Benzinga.

Cryptocurrency trader Justin Bennett said that we are likely to see some “bullish reclaims," namely for Bitcoin. 

“I think everyone will have to wait a while longer for the big drop,” he said on Twitter.

Cryptocurrency trader Michaël van de Poppe said that the total market capitalization for cryptocurrency has regained the 200-week moving average, which is a positive for the markets.

Jon Haspel, a senior institutional trading associate at BlockFi, tweeted that irrespective of the prevailing macro landscape, Ethereum has seen pronounced selling pressure due to numerous factors such as decreasing whale wallets, miner selling and Ethereum Pow (ETHW) trade.

Meanwhile, the price ratio of XRP/BTC hit a one-year high of 0.000025 as optimism builds around Ripple settling a lawsuit with U.S. Securities and Exchange Commission, said Santiment.

“Active shark & whale addresses holding 1m to 10m [XRP] have been in an accumulation pattern since late 2020,” said the market intelligence platform on Twitter.

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