Bitcoin, Ethereum, Dogecoin Fall On Recession Worries: Analyst Says Long-Term Crypto Bets Awaiting 'Bullish Trigger' Or 'Capitulation Moment'

Zinger Key Points
  • Risk assets remain downbeat ahead of expected rate hike by the U.S. Federal Reserve.
  • Whales and Sharks continue to accumulate Ethereum among volatility.
  • CryptoQuant analyst saus UTXO volume indicates key information about Bitcoin bottom.

Bitcoin and Ethereum traded lower on Wednesday evening as the global cryptocurrency market cap dropped 1.8% to $841.15 billion at 7:21 p.m. EST.

Price Performance Of Major Coins
Coin 24-hour 7-day Price
Bitcoin BTC/USD -1.3% -1.75% $16,856.27
Ethereum ETH/USD -2.9% -4.75% $1,233.13
Dogecoin DOGE/USD -4.3% -10.5% $0.096
Top 24-Hour Gainers (Data via CoinMarketCap)
Cryptocurrency 24-Hour % Change (+/-) Price
Trust Wallet Token (TWT) +4.5% $2.44
GMX (GMX) +3.9% $52.13
Synthetix (SNX) +3.5% ​​$1.97

See Also: 5 Best Robinhood Crypto Alternatives For 2022

Why It Matters: Ahead of an expected 50 basis point rate hike by the U.S. Federal Reserve, risk assets came under pressure from nervous investors worried about a looming recession. 

Bitcoin and Ethereum were seen trading lower while U.S. stock futures traded largely flat at the time of writing.

Investors will keep a lookout for the weekly jobless claim numbers on Thursday and a slew of corporate earnings data on the same day.

“Bitcoin is down as risk appetite fades away on recession worries. Bitcoin has massive resistance at the $17,500 level and that should hold leading up to next week’s FOMC decision,” said Edward Moya, a senior market analyst at OANDA.

“Crypto could trade in ranges which might support intra-day volumes only. Long-term crypto bets that are waiting to be placed will require either a bullish fundamental trigger or a capitulation moment that has Bitcoin testing a key technical level."

Michaël van de Poppe noted the “mega moves” by the apex coin. The trader said he can’t wait for the “breakout to $16,950” level.

Whales and shark investors are piling on Ethereum to their reserves as the second-largest coin’s price fluctuates, said Santiment.

The market intelligence platform said that key shark and whale addresses — holding 100 to 1 million ETH — own two-thirds of Ethereum’s overall supply. They added 2.1% more collective coins to their stocks in the past month.

Bitcoin’s unspent transaction output (UTXO) volume estimated to have been purchased 1 week to 1 month rose sharply for the first time in the current bear market, said Dan Lim, an analyst with CryptoQuant.

Lim cited three instances in the past — the 2015 bear market, the 2018 bear market and the current bear market — when this movement took place at the bottom.

“It took 1358 days in 2018, and 1444 days in 2022 to make this movement,” noted the analyst.

UTXO represents the amount of digital currency that remains after a cryptocurrency transaction has taken place. It is the cryptocurrency world’s equivalent of change.

Read Next: Billionaire VC Chamath Palihapitiya Calls FTX 'Sophisticated Con' With Lack Of Media, Regulatory Oversight

Market News and Data brought to you by Benzinga APIs
Posted In: CryptocurrencyNewsTop StoriesMarketsMoversTrading IdeasBitcoindogecoinEthereum
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!