Bitcoin, Ethereum, Dogecoin Slip: Analyst Says Apex Crypto's Stabilization 'A Welcome Sign' Despite Lack Of Catalyst

Zinger Key Points
  • Major cryptocurrencies were in red even as tech stocks gained on Tuesday.
  • Fed Chair Jerome Powell called out structural issues in DeFi.
  • Bitcoin is showing resilience despite violent selloffs in major indexes, says OANDA analyst.
Bitcoin, Ethereum, Dogecoin Slip: Analyst Says Apex Crypto's Stabilization 'A Welcome Sign' Despite Lack Of Catalyst

The two largest coins were in the red Tuesday evening, as the global cryptocurrency market cap slipped 0.6% to $933 billion at 8:12 p.m. EDT.

Price Performance Of Major Coins
Coin 24-hour 7-day Price
Bitcoin BTC/USD -0.6% 1.1% $19,112.71
Ethereum ETH/USD -0.3% -0.4% $1,330.80
Dogecoin DOGE/USD -0.7% 3.7% $0.06
Top 24-Hour Gainers (Data via CoinMarketCap)
Cryptocurrency 24-Hour % Change (+/-) Price
Reserve Rights (RSR) +13.4% $0.009
Quant (QNT) +12.7% $135.53
STEPN (GMT) +8.8% ​​$0.70

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Why It Matters: Major cryptocurrencies broke away from tech stocks on Tuesday and traded lower. The tech-heavy Nasdaq closed 0.25% higher at 10,829.50 for the day, while the S&P 500 fell 0.2% to 3,647.29.

Stock futures were seen marginally in the green after the S&P 500 fell below its June lows in Tuesday’s regular trading.

U.S. Federal Reserve Jerome Powell called out “structural issues” in decentralized finance, or DeFi, in a speech at a seminar organized by France’s national bank — Banque de France.

“Within the DeFi ecosystem, there are these very significant transparencies, lack of transparency [issues],” said Powell.

Meanwhile, Chicago Fed President Charles Evans said he doesn’t foresee “recession-like” unemployment numbers, reported Reuters.

Evans reportedly said the central bank will need to hike interest rates to between 4.5% and 4.75%.

“Bitcoin has been showing some resilience given the violent selloffs happening across most of the major indexes,” said OANDA senior market analyst Edward Moya, in a note seen by Benzinga.

“Bitcoin doesn't have a catalyst to extend much higher, but a stabilization is a welcome sign for long-term bulls.”

Michaël van de Poppe reminded his followers on Twitter that “one intra-day move doesn’t change a market.” The cryptocurrency trader’s comments were in relation to comments that the “relief rally is over.”

“Today has been volatile, and feels a bit sketchy; the core of this week is laying in Thursday/Friday fundamental en macro-economic news.”

Investors can expect personal consumption expenditures (PCE) data on Friday — the Federal Reserve’s preferred metric on inflation.

Head of research at digital asset management company Coinshares, James Butterfill, said that Bitcoin volumes against the U.K. Pound were $881 million on Monday. The average is $70 million. 

“When a FIAT currency is threatened, investors start to favor Bitcoin,” said Butterfill. 

Velocity, or the total number of BTC moved in a year divided by the total supply, indicates the speed of coin distribution in the market.

CryptoQuant said that BTC velocity has been on the decline despite no such fall in transactions.

Bitcoin Velocity, Courtesy — CryptoQuant

“This means that institutions' funds continued to trade bitcoin despite falling prices,” said the community-driven analytics platform in a note, shared on Twitter. 

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