Bitcoin, Ethereum, Dogecoin Hold It Together Amid Tech-Stock Meltdown: Is Crypto 'Close To The Bottom?'

Major coins traded mixed Thursday evening as the global cryptocurrency market cap rose 0.5% to $947 billion at 8:11 p.m. EDT.

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Why It Matters: Although Ethereum traded in the red, major coins appeared resilient in the face of a tech meltdown on Thursday in the stock market. The Nasdaq closed over 300 points lower intraday, while the S&P slipped nearly 80 points. 

Nasdaq and S&P 500 futures were marginally higher at 0.3% each at the time of writing.

“Bitcoin’s correlation with tech stocks remains, but it isn’t breaking as bad as it has during most of this cycle,” said OANDA Senior Market Analyst Edward Moya, in a note seen by Benzinga.

“Bitcoin is still above the $19,000 level despite a near 4% drop in the Nasdaq.  It appears Wall Street believes crypto is close to the bottom and will become an attractive diversification strategy once the peak in Treasury yields is in place.”

Moya noted that “calls for another crypto crash have been somewhat quiet.” He said Bitcoin has “major support” above the $18,000 mark.

Market intelligence platform Santiment said if the correlation between Bitcoin and equities is easing, then “this is very encouraging.”

#Bitcoin has stuck around $19.4k and #Ethereum at $1,340 today. But the story is the fact that they are doing so without the support of the #SP500, which is down -2.4%. If the correlation is easing between #crypto & #equities, this is very encouraging. https://t.co/2cs5JJiSZZ pic.twitter.com/kIpGjnqz9w

— Santiment (@santimentfeed) September 29, 2022

GlobalBlock analyst Marcus Sotiriou pointed to on-chain analytics, which he said were showing some bullish signs as far as the apex crypto is concerned.

Comparing Long Term Holder (LTH) Realized Price with the Short Term Holder Realized (STH) Price, he said the STH Realized price had only crossed the LTH Realized price three times in Bitcoin's history untill the last weekend, when it crossed again.

Bitcoin — Cost Base Analysis, Courtesy GlobalBlock Via Glassnode

“The other occasions this happened, it indicated a bottoming process. We can keep an eye on when the STH band crosses back over the LTH band to potentially signal a restart in the bull market, if Bitcoin follows the same pattern as previous bear markets,” said Sotiriou.

Glassnode tweeted on Thursday that the LTH profitability has dropped to levels seen during the lows of the Dec. 2018 bear market.

“Long-Term Holders are selling $BTC at an avg loss of 42%, indicating LTH spent coins have a cost basis around $32k,” said the on-chain analysis firm.

#Bitcoin Long-Term Holder profitability has declined to levels last seen during the depths of the Dec 2018 bear market.

Long-Term Holders are selling $BTC at an avg loss of 42%, indicating LTH spent coins have a cost basis around $32k.

Live Chart: https://t.co/sCKIzBLCTM pic.twitter.com/wEnfVzEs9I

— glassnode (@glassnode) September 29, 2022

The United Kingdom’s economic woes continue to impact Bitcoin. The apex coin’s traded volume rose 11x on Thursday, according to Michaël van de Poppe.

The cryptocurrency trader tweeted, “Bitcoin is the way out. However, before most people will realize this, it will be too late. That’s why the time to accumulate is now.”

#Bitcoin traded volume did a 11x in Great Britain on the day.

Bitcoin is the way out.

However, before most people will realize this, it will be too late.

That’s why the time to accumulate is now.

— Michaël van de Poppe (@CryptoMichNL) September 29, 2022

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