Bitcoin, Ethereum, Dogecoin Flat Amid Inflation Fears: On-Chain Analytics Firm Says This Could Signal ETH 'On Its Way' To $2K

Major cryptocurrencies traded flat on Sunday evening even as investors appeared less concerned than they were in May, when debates surfaced among U.S. lawmakers surrounding the country’s debt ceiling.

What Happened: Bitcoin traded above $27,000 on Sunday as it barely flinched in response to an unexpectedly strong jobs report, a week of political turmoil over the US debt ceiling, and renewed inflation fears.

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At the time of writing, the global crypto market capitalization stood at $1.14 trillion, a decrease of 0.11% over the last day. 

US equity futures are holding steady on Sunday evening, following a strong week for the market that saw the S&P 500 experience its best performance since March and reach its highest level since August of last year. Futures tied to the S&P 500 are currently up 0.09%, while Nasdaq-100 futures are just below the flat line.

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Analyst Notes: "Bitcoin is holding steady after a busy week filled with a debt limit deal, a complicated jobs report that showed both robust hiring and surging layoffs, and as lawmakers inch towards figuring out how to regulate crypto. A new bill, the Securities Clarity Act, is being discussed could provide guidance that clarifies if some tokens are unregistered securities," said Edward Moya, Senior Market Analyst at OANDA.

Crypto analyst, Benjamin Cowen, is cautioning investors to brace themselves for a potential drop in the altcoin markets.

Cowen states that the current state of the Bitcoin dominance (BTC.D) chart is a clear indication that altcoins may experience a significant downturn.

According to pseudonymous trader Crypto Tony, BTC is currently in a consolidation phase after a drop from its high point on April 14. 

Crypto Tony has predicted a long target of $25,300 for BTC. However, he warned that  BTC must remain below $28,350 in order to avoid the downside target. 

Data from on-chain analytics forum Santiment shows that Ethereum has been experiencing a surge in profit-taking transactions following a moderate price increase of 5% over the past week. "Typically, we want to see a lot of traders hodling, and if this ratio comes down to earth, it would be a signal $ETH is on its way to $2,000."

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