Bitcoin, Ethereum, Dogecoin Rallies Screech To Halt: Analyst Sees 'Healthy Consolidation' Amid Mixed Economic Data, Tether Worries

Zinger Key Points
  • Global cryptocurrency market cap decreased 1.3% to $853.9 billion.
  • Concerns brewing on Tether loans as the 'next big risk' for cryptocurrencies, says OANDA analyst.
  • Bitcoin in region where it has seen previous historical bottoms, points out CryptoQuant analyst.
Bitcoin, Ethereum, Dogecoin Rallies Screech To Halt: Analyst Sees 'Healthy Consolidation' Amid Mixed Economic Data, Tether Worries

The rally in major coins, from earlier in the week, was grinding to a halt on Thursday evening as the global cryptocurrency market cap decreased 1.3% to $853.9 billion.

Price Performance Of Major Coins
Coin 24-hour 7-day Price
Bitcoin BTC/USD -1.2% 2.5% $16,968.44
Ethereum ETH/USD -1.4% 6.5% $1,276.08
Dogecoin DOGE/USD -4.9% 25.8% $0.10
Top 24-Hour Gainers (Data via CoinMarketCap)
Cryptocurrency 24-Hour % Change (+/-) Price
EthereumPoW (ETHW) +16.4% $3.90
Trust Wallet Token (FTM) +7.8% $2.30
Dash (DASH) +4.6% ​​$45.32

See Also: A Guide To Automated Crypto Trading For Beginners 

Why It Matters: Bitcoin and Ethereum were both trading in the red along with other risk assets. S&P 500 and Nasdaq futures were down 0.3% and 0.4%, respectively, at the time of writing. 

The weakness in risk assets came as investors turned their attention to the upcoming Labor Department’s report on nonfarm payrolls, due on Friday morning (EST). 

Nonfarm payrolls are expected to rise by 200,000 jobs in November after rising by 261,000 in October.

Meanwhile, economic activity in the manufacturing sector shrank in November for the first time since May 2020 after seeing 29 consecutive months of growth according to the latest Manufacturing ISM Report on Business. The Manufacturing PMI was at 49% — 1.2 percentage points lower than the 50.2% recorded in October.

“The weakening jobs data could be having an impact on the Federal Reserve’s stance, and hence could lead to the stock market and crypto rising sooner than many predict,” said Marcus Sotiriou, an analyst with GlobalBlock — a digital asset broker.

Edward Moya, a senior market analyst with OANDA, said on price rise: “The trends are clear for inflation, but the big question mark is if the labor market is going to have a broader slowdown.  Tomorrow’s NFP report will be important as it could move forward bets that inflation will continue to decline.”

“Cryptos are struggling today as the earlier rally faded ahead of NFPs and concerns brew that Tether loans could be the next big risk for the cryptoverse. Stablecoins are an important part of the crypto world and if one of the major ones breaks, that will send Bitcoin and Ethereum to new lows,” said Moya in a note seen by Benzinga.

Bitcoin “tested the resistance, took the high and corrects after a terrible ISM PMI of 49.0,” said Michaël van de Poppe. 

“Probably just some healthy consolidation before continuation on the trading takes place. Long still exists,” said the trader.

The dollar index, a measure of the greenback’s strength against a basket of six currencies, was seen trading 1.15% lower at 104.73 at the time of writing.

“Seems like we'll finally get that 103 $DXY retest this month or next. This is partly why I think risk assets have a bit higher to go here,” said the trader Justin Bennett.

A CryptoQuant analyst shared four time periods where Bitcoin's percentage of supplies in profit dropped and the percentage of supplies in losses rose. The charts indicated periods of time where Bitcoin’s price historically has seen its market bottoms and included a 7-month period leading up to the present from May 2022.

Read Next: 2 Reasons Bitcoin Could 'Crash To Ground Level' According To Morgan Creek's Yusko

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