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Bitcoin (BTC) trades around $ 51,800.08 from 21:00 UTC (16:00 ET). Climb 3.48% over the previous 24 hours.
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Bitcoin 24-Hour Range: $ 49,390.18- $ 51,982.31 (CoinDesk 20)
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BTC trades above the average of 10 hours and 50 hours on the hourly chart, a bullish signal for market technicians.
The price of Bitcoin has retreated from the February highs in recent weeks, and it has fallen along with US equities as investors have become increasingly concerned about rising US government bond yields, which could prompt the Federal Reserve to tighten monetary policy sharpened, which would limit the easy money era that boosted risky assets. shares to cryptocurrency.
But on Monday, bitcoin’s price climbed for a fourth consecutive day, even as the ten-year yield continued its march to 1.6%. US stocks slipped.
“It is interesting to note that treasury yields and the US dollar index are both increasing, but bitcoin, unlike previous times, is not moving in the opposite direction to them,” said Andrew Tu, chief executive of the quantitative trading firm. Efficient Frontier, told CoinDesk.
Related: Bitcoin’s 2021 Returns Destroy Everything on Wall Street, says Goldman Sachs
At present, there is little evidence of an increase in trading volume that could reflect a fresh shock of market intensity. The daily volume reported by eight U.S.-focused CoinDesk tracks remains flat, keeping pace with the nearly two-week trend.
One bullish sign continues to evolve: bitcoin balances held on exchanges reached their lowest level since November 2018, according to data from blockchain data site Glassnode. Market analysts interpreted the lower bitcoin balance on exchanges as a bullish sign, an indication that few traders plan to sell out of their long positions. This could imply in the short term the chances for major market correction.
While trading activity has been relatively subdued, with bitcoin owning more than $ 50,000, some analysts are watching the next level of resistance.
“$ 52,000 seems to be the key resistance we want to break,” Tu said.
Related: How the NFT Boom Square Explains Tide Buy
However, others warn that if bond yields and the strength of the dollar continue to rise, the crypto market could weaken again.
“With the U.S. tariff market, we may see some turbulent movements with risk-averse sentiment spilling over to crypto markets,” Annabelle Huang, a partner at crypto market maker Amber Group, told CoinDesk.
Read more: Stimulus-led rise of Bitcoin fades as stocks fall, dollar gains
Huang said a short-term support level for bitcoin would be between $ 40,000 and $ 43,000. She says previous visits to these levels have been attractive enough to attract buyers.
Read more: Bitcoin falls 4% as Powell’s ‘concerns’ over rising securities
Ether outperforms bitcoin, the market awaits Ethereum upgrade
There’s a new force in the ether market: the mania for non-fungible tokens, also known as NFTs, a fast-growing subsector in the crypto industry that has so far been largely built on top of the Ethereum blockchain.
Ether (ETH), the second-largest market-capitalized cryptocurrency, was higher on Monday, trading around $ 1,773.21, up 7.37% in 24 hours from 21:00 UTC (16:00 ET).
Ether has outperformed bitcoin since reaching an all-time high of more than $ 2,000 on February 19th. It is currently benefiting from the notable sales of non-fungible tokens (NFT) and the prospect that further growth may spur demand for ether.
The NFT craze continues this week, and with the vast majority of NFT tokens built on top of the Ethereum blockchain, the ethereal market is attracting new bullish speculation, according to Stefan Coolican, chief financial officer of investment firm Ether Capital.
Read more: Ethereum’s EIP 1559 ‘Fairy Market Review Greenlit for July
At the same time, the scheduled “Ethereum Improvement Proposal 1559” (EIP 1559) upgrade caught investors’ attention.
“One of the biggest problems currently facing mainstream investors is their concerns about transaction fees and the usability of Ethereum,” Ether Capital CEO Brian Mosoff told CoinDesk. He noted that a significant amount of investment in Ethereum has focused on scale solutions.
Ethereum blockchain users are currently paying a ‘guest’ fee to a miner for a transaction to be included in a block. Such fees make up a significant portion of the miners’ total revenue, said David Derhy, an analyst at eToro Investment Platform, in the EIP 1559 statement. “Under the new proposals, however, gas money will rather be sent to the network in” a new fee structure. called ‘base fee’. ”
“We expect ether to break a new foundation of more than $ 2,000 this year, with the hard fork and the fee that will all help strengthen its position as the No. 2 crypto asset, raising demand, said Derhy.
He added that the price increase of ether proves that the updates are mostly welcomed by the market.
Other markets
Digital assets on the CoinDesk 20 are mostly green on Monday. Notable winners from 21:00 UTC (16:00 ET):
Notable losers:
Shares:
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Asia’s Nikkei 225 closed in the red 0.42%.
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The FTSE 100 in Europe was 1.34% green.
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The S&P 500 in the United States closed in the red 0.54%.
Commodities:
Treasurys: