‘Crypto Is Dead’ Calls Overkill, Says Analyst As Bitcoin (BTC), Ethereum (ETH) Hold It Together

Most major coins traded lower on Thursday evening, with the global cryptocurrency market capitalization down 1.2% to $1.06 trillion at press time.

Price performance of major coins
Piece of money 24 hours 7 days Price
Bitcoin BTC/USD -1.8% -4.9% $22,668.99
Ethereum ETH/USD -2.2% -6.4% $1,611.71
Dogecoin DOGE/USD 0.5% -2.6% $0.07
Top 24 hour gainers (data via CoinMarketCap)
Cryptocurrency % change over 24 hours (+/-) Price
To flow (TO FLOW +38.6% $2.63
Trust Wallet Token (TWT) +11.6% $1.16
1 inch network (1 INCH) +7.3% $0.84

See also: Best USDC Interest Rates

Why is this important: Risky assets were not aligned at press time, Bitcoin and Ethereum in the red, while equity futures were in the green. S&P 500 and Nasdaq futures were up 0.2% and 0.3%, respectively, at press time.

Edouard Moyaa senior market analyst at OANDA, said that while Bitcoin’s correlation to stocks is still intact, the digital asset has underperformed in recent sessions.

“A rise with Fed rate hike expectations has capped how high Bitcoin can go for now, but as long as traders remain confident that the peak in Treasury yields remains in place, Bitcoin may have already bottomed,” Moya wrote in a note, seen by Benzinga.

However, Moya is confident about cryptocurrencies as a whole. “Calls that crypto is dead have been exaggerated. In fact, crypto is alive and well.

The analyst’s optimism was based on Coinbase Global Inc. PIECE OF MONEY announcing a partnership with black rock this would allow the latter’s investment management platform to directly access cryptocurrencies.

Meanwhile, 10-year Treasury yields fell 5.3 basis points to 2.696% on Thursday. The spread between two-year and 10-year Treasury bond yields closed 35.7 basis points to its lowest inversion since 2000, Reuters reported. Stocks have largely ignored this reversal, according to Moya.

Digital Delphi pointed out in a note that historical data shows that when the federal funds rate is above neutral interest rates, “recessions tend to occur.”

Rate neutrality implies that any further rate hikes by the US Federal Reserve will result in restrictive action.

Difference between the federal funds rate and the rate. Neutral Rate Inflation – Courtesy of Delphi Digital

“Economic factors such as market capitalization relative to GDP, consumer sentiment with its relationship to unemployment, and falling GDP imply that the current market move is a bearish rally,” the independent research store said.

Trader in cryptocurrency Justin Bennett said the total market capitalization could reach the $1.15 trillion mark if it recovers to levels of $1.05 trillion.

Read more : Coinbase asks Supreme Court to stay user lawsuits over Dogecoin and scammers

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