The rally in major coins smoldered Thursday night as the global cryptocurrency market cap edged up 0.3% at press time to $1.1 trillion.
|coin||24 hours||7 days||Price|
|cryptocurrency||24-hour % change (+/-)||Price|
|Ethereum classic (ETC)||+9.3%||$42.3|
|Raven Coin (RVN)||+8.7%||$13.5|
See also: Best Crypto Debit Cards
Why it matters: The rise in bitcoin and ethereum prices, driven by lower inflation numbers in July, is moderating at press time.
Cryptocurrencies appear to be trailing stocks, which gave up gains during the recent broader risk rally. The S&P 500 ended Thursday flat, while the tech-heavy Nasdaq fell 0.6%. At press time, S&P 500 and Nasdaq futures are trading flat.
Ethereum recently saw a more robust price surge relative to Bitcoin as FOMO built up around the upcoming merger. The merge is an indication of Ethereum’s shift to a proof-of-stake mining model from the current proof-of-work mechanism.
Michael van de Poppe noted that ETH was the “real asset” propping up the market amid the merger frenzy. The cryptocurrency trader expects the second largest coin to move towards the $2,500 level and Bitcoin towards the $30,000 region in the coming month.
Honestly, #Ether is the actual asset that is sustaining the markets as some FOMO are starting to get a bit of a grip on the markets with the merger and the upcoming ETH 2.0.
— Michaël van de Poppe (@CryptoMichNL) August 11, 2022
GlobalBlock Analyst Marcus Sotiriou cited data from Bank of America’s Global Fund Manager Survey, which showed fund managers are more risk-averse than they were in 2008, the year the global financial crisis hit.
“This preceded a market bottom in 2008 and confirms why this recent rally we’ve seen is so hated as most pros missed it,” wrote Sotiriou in a note seen by Benzinga.
OANDA’s Lead Market Analyst Edward Moya said Wall Street was “beginning to doubt how soon the [Federal Reserve] will be able to turn.” Moya said it is “way too early to continue to expect the next round of inflation data to maintain this declining pace.”
Regarding cryptocurrencies, Moya said Ethereum “leads the charge” while Bitcoin has encountered a wall of resistance.
“Bitcoin is also above the $24,000 level but is clearly seeing massive resistance from the $25,000 level. It seems that Bitcoin could take a while to recover above $25,000, but if it does, it could be taken towards $28,400 first.”
Justin Bennett said that Thursday’s daily close for Bitcoin did not look good. The trader said the Apex coin needed to close above $24,200 to “flip to support.” He advised his Twitter followers to be “careful”.
Not a great look for $BTC in the end of the day.
Like I’ve been saying all week #Bitcoin must close above $24,200 to flip it to support.
Until then, it’s resistance. Hence this cancellation.
Be careful out there. pic.twitter.com/DQgZCvI2Cq
— Justin Bennett (@JustinBennettFX) August 11, 2022
On-chain analytics firm Glassnode pointed out this aggregate accumulation, which has increased following the collapse of Terra classic (LUNC) in June on shrimp and whale co-hoarding, has started to weaken during the recent rally. The Accumulation Trend Score measures the relative size of units accumulating Bitcoin on-chain.
That #Bitcoin The Accumulation Trend Score has started to weaken during this rally.
This follows a near perfect two months of aggressive balance increases following the collapse of LUNA and again in June, driven primarily by the Shrimp and Whale cohorts
Live chart: https://t.co/OqT6baYhjq pic.twitter.com/bEtaX91GCL
— Glass Node (@glassnode) August 11, 2022
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