The rally in major coins simmered down Thursday evening as the global cryptocurrency market cap rose marginally by 0.3% to $1.1 trillion at press time.
|Cryptocurrency||24-Hour % Change (+/-)||Price|
|Ethereum Classic (ETC)||+9.3%||$42.3|
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Why It Matters: The rise seen in Bitcoin and Ethereum prices, stemmed by lower July inflation numbers, moderated at press time.
Cryptocurrencies appear to be following stocks in shedding gains racked during the recent broader risk-on rally. The S&P 500 ended Thursday flat, while the tech-heavy Nasdaq was down 0.6%. At press time, S&P 500 and Nasdaq futures traded flat.
Ethereum saw a more robust surge in prices compared to Bitcoin recently as FOMO built up around the upcoming merge. The merge is a reference to Ethereum’s move to a proof-of-stake mining model from the current proof-of-work mechanism.
Michaël van de Poppe noted that ETH was the “actual asset” propping up the market amid the merge buzz. The cryptocurrency trader expects the second-largest coin to continue towards the $2,500 mark and Bitcoin towards the $30,000 region in the coming month.
Honestly, #Ethereum is the actual asset that is carrying the markets, as some FOMO is starting to get some grip on the markets with the merge and ETH 2.0 coming up.
— Michaël van de Poppe (@CryptoMichNL) August 11, 2022
GlobalBlock analyst Marcus Sotiriou pointed to data from Bank of America Global Fund Manager Survey that showed fund managers are more risk averse than they were in 2008 — the year the global financial crisis hit.
“This preceded a bottom in the market in 2008 and confirms why this recent rally we have seen is so hated, as most professionals have missed it,” wrote Sotiriou, in a note seen by Benzinga.
OANDA Senior Market Analyst Edward Moya said Wall Street is beginning to “second guess how soon the [Federal Reserve] will be in a position to pivot.” Moya said it was “way too early to continue to expect the next round of inflation readings to keep that declining pace.”
On cryptocurrencies, Moya said that Ethereum is “leading the charge” while Bitcoin has run into a wall of resistance.
“Bitcoin is also above the $24,000 level, but is clearly seeing massive resistance from the $25,000 level. It seems, it might take a while longer for Bitcoin to rally above the $25,000 level, but when it does it momentum could take it towards the $28,400 level initially.”
Justin Bennett said the daily close for Bitcoin didn’t look good on Thursday. The trader said the apex coin needs to close above $24,200 to “flip it to support.” He advised his Twitter followers to be “careful.”
Not a great look for $BTC into the daily close.
As I’ve said all week, #Bitcoin needs to close above $24,200 to flip it to support.
Until then, it’s resistance. Hence this rejection.
Be careful out there. pic.twitter.com/DQgZCvI2Cq
— Justin Bennett (@JustinBennettFX) August 11, 2022
On-chain analysis firm Glassnode pointed out that aggregate accumulation, which was rising post the collapse of Terra Classic (LUNC) in June on account of Shrimp and Whale cohorts, has begun to soften during the latest rally. The Accumulation Trend Score measures the relative size of entities that are accumulating Bitcoin on-chain.
The #Bitcoin Accumulation Trend Score has started to soften during this rally.
This follows a near perfect two months of aggressive balance increases after the LUNA collapse, and again in June, primarily driven by the Shrimp and Whale cohorts
Live Chart: https://t.co/OqT6baYhjq pic.twitter.com/bEtaX91GCL
— glassnode (@glassnode) August 11, 2022
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