Bitcoin and Ether were dragged into a sell-off in the crypto market on Tuesday, along with U.S. stocks, before recovering later today. Previously, Ether and Dogecoin hit new record prices.
US Treasury Secretary Janet Yellen was a catalyst for the midday sale after warning that interest rates may have to rise. Some traders have apparently sold on concerns that the era of cheap money might not last forever.
- Ether (ETH) is trading around $ 3,369 at 9:00 p.m. UTC (4:00 p.m. ET). Gain of 3.4% in the last 24 hours.
- 24 Hour Ether Range: $ 3,237 – $ 3,530 (CoinDesk 20)
- The price of Dogecoin (DOGE) doubles, trading around 0.57 at 9:00 p.m. UTC (4:00 p.m. ET). Jump 38.7% in last 24 hours.
- Bitcoin (BTC) is trading around $ 54,591 at 9:00 p.m. UTC (4:00 p.m. ET). 5% slip in the previous 24 hours.
- 24-hour range of Bitcoin: $ 53,633 – $ 57,356 (CoinDesk 20)
Ether was trading around $ 3,369 at 9:00 p.m. UTC (4:00 p.m. ET), up 3.4% from the previous 24 hours, after falling to $ 3,168 a few hours earlier.
The second-largest cryptocurrency by market cap hit a record earlier on Tuesday, reaching $ 3,530 around 2:30 p.m. UTC (9:30 a.m. ET). That’s more than $ 200 more than the previous record, set Monday, of $ 3,300. ETH is above the 10-hour and 50-hour moving averages on the hourly chart, a bullish signal for market technicians.
There seems to be some fascination among ether traders with the $ 3,000 level, noted Alessandro Andreotti, a trader in the over-the-counter crypto market.
“ETH has taken the limelight for breaking the $ 3,000 barrier,” he said.
In addition to record prices, ether volumes are also reaching record highs. In fact, according to data from CoinDesk Research, the trading volume of ether was greater than that of bitcoin to start the week. On Monday, the ether spot trading volume reached $ 61 billion, with the BTC spot market changing hands to $ 52 billion.
Rich Rosenblum, co-founder of crypto market maker GSR, claims that ether and bitcoin now behave as very separate assets, which they normally don’t.
“There is a disconnect between BTC and ETH,” Rosenblum told CoinDesk.
This disconnection could lead the ether to go further, according to Nick Spanos, co-founder of the decentralized finance start-up Zap Protocol.
“As ETH has risen in recent days, its continued growth path is certain, and levels above $ 5,000” represent the new target, Spanos said.
Spanos also noted that Ether’s dominance, or its share in the total market capitalization of the cryptocurrency ecosystem, is now hovering around 18%. This is the highest since 2018 at the end of the previous big cryptocurrency bull run.
“The current all-time high of over $ 3,500 has rekindled the ambitious sentiment that Ethereum could potentially reverse bitcoin by market cap in the near future,” noted Konstantin Anissimov, executive director of crypto exchange CEX.IO.
Read more: Ether Price, at the forefront of record 10-day streak, exceeds $ 3,500
Does Elon and ‘Saturday Night Live’ push DOGE to the top?
Dogecoin hit an all-time high on Tuesday, breaking above $ 0.61 around 3:00 p.m. UTC (10:15 a.m.ET). The cryptocurrency, known for its memorable Shiba Inu dog character, now has a market cap of over $ 72 billion, according to data aggregator CoinGecko.
Over-the-counter trader Alessandro Andreotti said the prominence of Tesla and SpaceX entrepreneur Elon Musk, who has advocated dogecoin in the past, could make investors salivate for a fundamental event that occurs later this week. “I think investors are optimistic for Elon Musk’s next appearance on “Saturday Night Live”. Absolutely.”
Musk will host “Saturday Night Live” this week on May 8 at 4:30 am UTC Sunday (11:30 pm ET Saturday).
Read more: Dogecoin hits new all-time high after eToro, Gemini listings
Bitcoin drops below $ 53,700 before recovering
The price of Bitcoin was down on Tuesday, dropping as low as $ 53,633 around 5:45 p.m. UTC (12:45 p.m. ET) and settling at $ 54,591 at the time of publication. BTC is below the 10-hour and 50-hour moving averages on the hourly chart, a bearish signal for market technicians.
“So far, BTC has remained relatively stable while [altcoins] continued to climb, ”said trader Alessandro Andreotti.
While it looks like bitcoin’s day-to-day price movements have been stable, its 60-day volatility is increasing from a recent low of 45% on April 15. It is currently over 64% from Monday’s close data. . In comparison, the 30-day volatility of the S&P 500 stands at just over 10%, according to CoinDesk Research.
Traditional markets sell
Bitcoin’s fall on Tuesday may have been exacerbated by traditional markets.
While Asia and Europe were mixed for the day, US stocks slipped on the possibility of an interest rate hike, which Treasury Secretary Yellen mentioned on Tuesday. The decline in stocks was followed by a slide in many crypto assets.
“The crypto market appears to be entering a cyclical phase away from beta and into stock picking mode,” noted Vishal Shah, founder of cryptocurrency derivatives exchange Alpha5, referring to the abandonment of trading. quantitative.
Read more: Bitcoin stabilizes after withdrawal; Face resistance at $ 58K
Digital assets on CoinDesk 20 are mostly in the red on Tuesday. Notable Winners at 9:00 p.m. UTC (4:00 p.m. ET):
- Oil rose 1.9%. Price per barrel of West Texas Intermediate crude: $ 65.74.
- Gold was in the red at 0.78% and $ 1,778 at the time of publication.
- The money is down, down 1.4% and changing hands to $ 26.48.
- The yield on 10-year US Treasuries fell to 1.589 and 1% in the red on Tuesday.