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

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.

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. 

Big week coming week with the Midterms coming up. Probably not going to move markets that much, but CPI at the end of the week will.

Volatility a lot.

Will be in the mountains, so that's going to be fun to watch markets in between haha.

— Michaël van de Poppe (@CryptoMichNL) November 6, 2022

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. 

Hope everyone has had a good weekend. $BTC tested $21,400 resistance, so any pullback from here will likely catch a bid around $20,800. #Bitcoin pic.twitter.com/HemVCPxy5G

— Justin Bennett (@JustinBennettFX) November 6, 2022

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. 

FTX's stablecoin reserve just reached a year-low.

$51M as of now. -93% over the last two weeks.https://t.co/eG4SVOO6cV pic.twitter.com/GIj3nJGXf6

— Ki Young Ju (@ki_young_ju) November 6, 2022

A decreasing trend indicates fewer stablecoins are available in the exchange, which implies decreasing buying power — an indicator that supports bearish movements.
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