Bitcoin, Ethereum, Dogecoin Slide: Analyst Says This Data Might Move Markets Rather Than Mid-Terms In Fresh Trading Week

Zinger Key Points
  • Investor sentiment largely unchanged going into fresh trading week.
  • Fed pivot expectations rest on CPI data expected at the end of week.
  • FTX stablecoin reserves touch a one-year low, notes CryptoQuant CEO.

Major coins were trading lower on Sunday evening as the global cryptocurrency market cap dropped 2.8% to $1.03 trillion at 8:11 p.m. EST.

Price Performance Of Major Coins
Coin 24-hour 7-day Price
Bitcoin BTC/USD -2.1% 1.55% $20,883.47
Ethereum ETH/USD -3.6% -0.9% $1,572.62
Dogecoin DOGE/USD -7% -7.2% $0.115
Top 24-Hour Gainers (Data via CoinMarketCap)
Cryptocurrency 24-Hour % Change (+/-) Price
Chiliz (CHZ) +3.25% $0.30
Litecoin (LTC) +1.3% $70.05
Fei USD (FEI) +1.1% ​​$1

See Also: Best Cryptocurrencies on Coinbase

Why It Matters: Bitcoin and Ethereum were in the red ahead of U.S. mid-term polls and as investors await consumer price inflation numbers slated for Thursday.

Other risk assets, such as stocks, were also in the negative zone. U.S. stocks were considerably lower — Nasdaq futures were down 0.7%, while S&P 500 futures fell 0.6% at the time of writing.

Friday’s job report indicated that the participation rate fell slightly, a sign that higher rates are having some effect. The unemployment rate rose to 3.7%. A hotter-than-expected inflation number on Thursday could mean a pivot by the Federal Reserve on interest rates is further away.

“A downshift to a slower pace of tightening still seems in the cards for the Fed and that should provide some short-term support for cryptos,” said Edward Moya, Senior Market Analyst at OANDA, in a recent note seen by Benzinga.

Michaël van de Poppe warned of high volatility and said that while the mid-terms might not move the markets a lot, the CPI figures will. 

On Bitcoin, cryptocurrency trader Justin Bennett said that Bitcoin tested $21,400 resistance and any pullback from that will likely catch a bid around the $20,800 mark. 

Going into the fresh trading week, investor sentiment was largely unchanged. Alternative.me’s “Crypto Fear & Greed Index” flashed “Fear” at the time of writing. Last week the index showed a similar reading.

CryptoQuant CEO Ki Young Ju noted on Twitter that FTX’s stablecoin reserve has touched a year-low of $51 million. A decline of 93% over the last two weeks. 

A decreasing trend indicates fewer stablecoins are available in the exchange, which implies decreasing buying power — an indicator that supports bearish movements.
Read Next: Here's How Much $100 In Dogecoin Could Be Worth If DOGE Returns To All-Time Highs

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