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Bitcoin (BTC) is trading around $ 51,800.08 as of 21:00 UTC (16:00 ET). Up 3.48% in the last 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 its 10- and 50-hour averages on the hourly chart, a bullish signal for market technicians.
Bitcoin’s price in recent weeks has declined since February’s historic highs, dropping along with U.S. stocks, as investors increasingly worried about rising U.S. government bond yields. actions for cryptocurrency.
But on Monday, the price of bitcoin rose for the fourth consecutive day, even as yields on 10-year bonds continued their march to 1.6%. US stocks fell.
“It is interesting to note that Treasury yields and the US dollar index are rising, but bitcoin, unlike earlier times, is not moving inversely to them,” said Andrew Tu, executive at quantitative trading firm Efficient Frontier, to CoinDesk.
Related: Bitcoin’s 2021 return destroys everything on Wall Street, says Goldman Sachs
At the moment, there is little evidence of an increase in turnover that could reflect a further shock in the market’s intensity. The daily volume reported by eight CoinDesk tracks with a focus on the US remained stable, maintaining the trend of almost two weeks.
A bullish signal continues to develop: bitcoin balances held on exchanges reached the lowest level since November 2018, according to data from the blockchain data site Glassnode. Market analysts interpreted the lower bitcoin balance on the exchanges as a bullish signal, an indication that few traders are planning to sell their long positions. This may imply low chances of a major market correction in the short term.
Although trading activity is relatively low, with bitcoin above $ 50,000, some analysts are looking to the next level of resistance.
“It seems that $ 52,000 is the important resistance that we are looking to break,” said Tu.
Related: How the NFT Boom explains the purchase of Square’s tide
Others, however, warn that if bond yields and the strength of the dollar continue to rise, the crypto market may weaken again.
“With the US rate market, we can see some agitated movements with risky feeling spreading to the crypto markets,” Annabelle Huang, a partner in the crypto market maker Amber Group, told CoinDesk.
Read More: The increase driven by Bitcoin stimuli fades as stocks fall and the dollar wins
Huang said a level of short-term support for bitcoin would be in the range of $ 40,000 to $ 43,000. She says that previous visits to these levels were tempting enough to attract buyers.
Read More: Bitcoin falls 4% when Fed’s Powell sees “concern” about rising bond yields
Ether outperforms bitcoin, market awaits Ethereum update
There is a new strength in the ether market: the craze for non-fungible tokens, also known as NFTs, a fast-growing subsector within the crypto industry that has so far been largely built on the Ethereum blockchain.
Ether (ETH), the second largest cryptocurrency by market capitalization, rose on Monday, trading around $ 1,773.21 and rising 7.37% in 24 hours from 21:00 UTC (4:00 pm ET).
Ether has surpassed bitcoin since reaching a record high above $ 2,000 on February 19. It is currently benefiting from the amazing sales of non-fungible tokens (NFT) and the prospect that further growth could stimulate more demand for ether.
The NFT craze continues this week, and with the vast majority of NFT tokens built on the Ethereum blockchain, the ether market is attracting new bullish speculation, according to Stefan Coolican, chief financial officer at investment firm Ether Capital.
Read More: Review of the Ethereum ‘EIP 1559’ fee market with green light for July
At the same time, the scheduled update of Ethereum’s “Ethereum 1559 Improvement Proposal” (EIP 1559) caught the attention of investors.
“One of the big problems at the moment for mainstream investors is the concern about Ethereum’s transaction fees and usability,” Brian Mosoff, CEO of Ether Capital, told CoinDesk. He noted that a significant amount of investment in Ethereum has focused on scaling solutions.
Ethereum blockchain users now pay a “gas” fee to a miner for a transaction to be included in a block. These fees make up a substantial part of the miners’ overall revenue, David Derhy, an analyst at the eToro investment platform, said in explaining EIP 1559. “However, according to the new proposals, gas fees will be sent to the grid in a new fee structure called the ‘base’. “
“We expect Ether to break new ground above $ 2,000 this year, with the hard fork and rate changes helping to consolidate its position as the second crypto asset, further fueling demand,” said Derhy.
He added that the rise in ether prices proves that the updates are welcomed by the market.
Other markets
The digital assets in CoinDesk 20 are mostly on green Monday. Notable winners from 21:00 UTC (16:00 ET):
Notable losers:
Shares:
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The Nikkei 225 from Asia closed in the red 0.42%.
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The FTSE 100 in Europe was at 1.34% green.
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The S&P 500 in the United States closed in the red 0.54%.
Commodities:
Treasures: