Bitcoin remained above the $31,000 level, while Ethereum slipped into the red as the global cryptocurrency market cap slipped 0.55% to $1.31 trillion at press time on Tuesday evening.
| Coin | 24-hour | 7-day | Price |
|---|---|---|---|
| Bitcoin BTC/USD | 0.06% | 7.31% | $31,750.77 |
| Ethereum ETH/USD | -3.2% | -1.9% | $1,938.04 |
| Dogecoin DOGE/USD | -2.6% | 2.8% | $0.085 |
Top Gainers Over 24 Hours
| Cryptocurrency | 24-Hour % Change (+/-) | Price |
|---|---|---|
| WAVES (WAVES) | +23.9% | $9.23 |
| Holo (HOT) | +12.1% | $0.003 |
| Cardano (ADA) | +8.7% | $0.62 |
See Also: Best Crypto Debit Cards
Why It Matters: Cryptocurrency markets were mixed press time. While the apex coin traded flat after a relief rally, the second-largest coin, Ethereum, dropped over 3% in intraday trading. For the week, BTC rose over 7%, while ETH has fallen over 2%.
Stock futures were seen trading higher ahead of the first trading day of June. S&P 500 and Nasdaq futures rose 0.5% each at press time.
The cryptocurrency market continues to be correlated with stocks, according to the trader Justin Bennett.
Bennett said if the S&P 500 continues to push higher this week, Bitcoin will likely follow. He pointed out that the apex coin has already run up $1,500 in 24 hours.
$BTC is already closing the gap since this tweet.
— Justin Bennett (@JustinBennettFX) May 31, 2022
Up $1,500 and counting in the last 24 hours.
If the S&P can continue to push higher this week, #Bitcoin will likely follow.$SPY $SPX https://t.co/r0c3Pr3Qdl pic.twitter.com/cA0bviovsV
Edward Moya, a senior market analyst with OANDA, said, “Bitcoin continues to follow what happens on Wall Street but that may change if more institutional investors believe that the crypto bottom has been made.”
However, inflow data from Coinshares, as noted by GlobalBlock analyst Marcus Sotiriou, indicates that institutions are buying the dip in cryptocurrencies.
Cryptocurrency funds saw inflows of $87 million last week, while in the preceding week there were outflows to the extent of $141 million. Inflows were dominated by Bitcoin, Ethereum saw outflows of $11.6 million.
“This coincides with Ethereum performing worse relative to Bitcoin last week, signalling investors were capitulating assets that are further on in the risk curve,” said Sotiriou, in a note seen by Benzinga.
“A positive figure for year-to-date inflows is promising when taking into consideration the negative price action we have seen over the past 7 months. It indicates that institutions and high net worth individuals have been net buyers throughout this bear market,” said Sotiriou.
Cryptocurrency analyst Will Clemente pointed to two on-chain metrics in a tweet on Tuesday. He said the long-term holder (LTH) cost basis is rising as the short-term holder (STH) cost basis declines.
“If this persists and STH crosses below LTH, historically has marked generational Bitcoin buying opportunities. We are getting close,” said Clemente.
Long-term holder cost basis is rising as short-term holder cost basis declines.
— Will Clemente (@WClementeIII) May 31, 2022
If this persists and STH crosses below LTH, historically has marked generational Bitcoin buying opportunities. We are getting close. pic.twitter.com/bwp8IUCfSR
Read Next: Bitcoin Lightning Network Capacity Touches All-Time High, Beating Market Bearishness
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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