Bitcoin and Ethereum managed to hold onto some intraday gains, amid increasing recessionary fears, as the global cryptocurrency market cap rose 0.4% to $856.7 billion at 7:24 p.m. EST.
| Coin | 24-hour | 7-day | Price |
|---|---|---|---|
| Bitcoin BTC/USD | 0.4% | 3.7% | $17,070.55 |
| Ethereum ETH/USD | 0.6% | 4.3% | $1,269.11 |
| Dogecoin DOGE/USD | -1.5% | -1.5% | $0.10 |
| Cryptocurrency | 24-Hour % Change (+/-) | Price |
|---|---|---|
| Ape Coin (APE) | +5.35% | $4.16 |
| MultiversX (Elrond) (EGLD) | +5.05% | $45.41 |
| NEAR Protocol (NEAR) | +4.15% | $1.79 |
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Why It Matters: Risk assets were weighed down by fears of a looming recession on Tuesday. The S&P 500 and Nasdaq closed 1.4% and 2% lower respectively for the day. U.S. stock futures were seen trading flat at the time of writing.
Amsterdam-based cryptocurrency trader Michaël van de Poppe said that there are some “pretty strong movements” from Bitcoin despite the “overall weakness of indices.”
Justin Bennett noted that Bitcoin is down 0.8% for the week, while the S&P 500 is lower by 2.8%.
The trader said on Twitter, “If [stocks] can find a bottom here, it would likely bode very well for [crypto.]”
“Bitcoin continues to hover around the $17,000 level, which is rather impressive given the recession-driven risk-off tone on Wall Street. Crypto traders are looking for something major to happen before they get back into this space,” said Edward Moya, a senior market analyst at OANDA.
“Either we see decisive regulatory actions put in place to foster long-term growth or the busy cycle continues as other crypto companies go under,” said the analyst, in a note seen by Benzinga.
Eroding wealth could drive a recession next year, according to Jamie Dimon, the CEO of JPMorgan Chase. The banking executive noted that households are spending down pandemic stimulus money that helped lift up the economy in 2021.
Even so, buying power is higher than during the 2021 bull run, according to Santiment. The market intelligence platform tweeted, “When traders want to execute on this [cryptocurrency] purchasing is another story. For now, the average % of supply held on exchanges of top [stablecoins] went from 32.5% to 28.4% in the past 4 months."
Meanwhile, Bitcoin’s decreased mining difficulty, which has fallen by 7.3%, is the largest such downward adjustment since July 2021, according to Glassnode.
The on-chain analysis firm said that “Given depressed coin prices, rising energy costs, and debt burdens, the mining industry is under extreme stress.”
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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