Bitcoin and other major digital coins were in the green at press time, as the global cryptocurrency market cap increased 2.7% to $1.3 trillion.
| Coin | 24-hour | 7-day | Price |
|---|---|---|---|
| Bitcoin (CRYPTO: BTC) | 1.8% | -1.9% | $30,563.82 |
| Ethereum (CRYPTO: ETH) | 3.2% | -10.95% | $2,100.90 |
| Dogecoin (CRYPTO: DOGE) | 2.7% | -16.8% | $0.09 |
| Cryptocurrency | 24-Hour % Change (+/-) | Price |
|---|---|---|
| Convex Finance (CVX) | +12.6% | $12.43 |
| Kusama (KSM) | +11.8% | $82.14 |
| ZCash (ZEC) | +11.2% | $114.04 |
Why It Matters: There was a considerable improvement in risk appetite on the equities side amid rallying markets on Tuesday, but the cheer on the cryptocurrency side was muted.
The S&P 500 and Nasdaq closed 2% and 2.8% higher, respectively, on Tuesday and at press time, U.S. stock futures rose slightly.
In an interview with the Wall Street Journal, U.S. Federal Reserve Chair Jerome Powell doubled down on fighting inflation and said there could be some pain involved. He said, “Restoring price stability is a non-negotiable need. It is something we have to do”
“We will go until we feel we’re at a place where we can say financial conditions are in an appropriate place, we see inflation coming down."
Bitcoin’s rebound is underperforming stocks as investors remain unsure of the “regulatory gauntlet” faced by the cryptocurrency universe, according to OANDA senior market analyst Edward Moya.
The regulatory pressures have been exacerbated due to the collapse of the Terra USD (UST) algorithmic stablecoin last week.
“Stablecoins will continue to get all the attention and until Wall Street is convinced all the major ones will be able to handle any future stresses. Guidelines for how stablecoins are backed and better transparency on how they apply their pricing mechanisms will be required,” said Moya, in a note seen by Benzinga.
The dollar index, a measure of the greenback’s strength against six other currencies, fell to 103.41, the lowest since May 6 on Tuesday, according to a Reuters report.
Cryptocurrency trader Michaël van de Poppe said that the price action was “pretty decent” following Powell’s speech.
“Nothing really changed, but it looks like [dollar index] will have some further downwards momentum in which risk-on assets could have some relief,” said the analyst on Twitter.
Pretty decent price action out of the speech from Powell.
— Michaël van de Poppe (@CryptoMichNL) May 17, 2022
Nothing really changed, but it looks like $DXY will have some further downwards momentum in which risk-on assets could have some relief.
On the movement of the apex coin, analysts are mixed in their outlook. Justin Bennett tweeted that Bitcoin is trying to “break out” and signals point to a relief rally.
$BTC is trying to break out.
— Justin Bennett (@JustinBennettFX) May 17, 2022
Everything else still points to a relief rally.#Bitcoin pic.twitter.com/aqPUnarIYN
Chartist Ali Martinez called a market bottom between $22,380 and $15,110 on Tuesday based on logarithmic regression.
#Bitcoin | Based on the Logarithmic Regression Bands, $BTC could reach a market bottom anywhere between $22,380 and $15,110. pic.twitter.com/hGOBYZ7NOh
— Ali Martinez (@ali_charts) May 17, 2022
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