In today’s bitcoin and cryptocurrency news, read about except for the XRP and Tether, which is tethered to the US dollar, all major cryptocurrency tokens were trading considerably higher on Tuesday. While Polkadot and Bitcoin both increased by 6%, Solana soared up to 8%. On the other hand, equities and fiat currencies are affected by the concern of a worldwide recession. Finally, over the past 24 hours, major cryptocurrencies, such as Bitcoin and Ethereum, have seen a significant run-up. Find out more latest news here on The Bit Buzz.
Bitcoin Rises by $20,000; Solana and Polkadot Both Rise by Up to 8%
Original Source: Crypto Price Today: Bitcoin regains $20K; Solana & Polkadot gain up to 8%
After a week of losses, crypto tokens surged Tuesday. Bitcoin hit $20,000 and Ethereum found its mojo following the Merge.
The recovery may be short-lived due to macroeconomic volatility and mounting recession fears, say economists. So traders should be wary, they add.
Except for XRP and Tether, all top crypto coins rose Tuesday. Solana rose 8% while Bitcoin and Polkadot rose 6% each.
Global cryptocurrency market cap was $962.94 billion, up 4% in 24 hours. The total trade volume rose 52% to $81.16 billion.
Take
Mudrex CEO Edul Patel said Bitcoin and Ethereum climbed with equity markets.
“Bitcoin buyers can take the lead above $19,500 by analyzing macroeconomic variables. Second-largest cryptocurrency Ethereum regained $1,300 psychological support.”
World news
China’s Hunan province arrested 93 people for allegedly laundering up to RMB 40 billion ($5.6 billion) using cryptocurrencies.
The CFTC filed and settled charges against a blockchain protocol and its founders last week.
Michael Patryn, co-founder of collapsed Canadian crypto exchange QuadrigaCX, has created UwU Lend, a decentralized-finance (DeFi) platform.
Decentralized file sharing protocol Filecoin nearly sevenfolded data sources since 2022, ahead of a big upgrade in 2023.
Crypto View by Giottus
ETH is the second-biggest crypto after Bitcoin. On September 15, Ethereum underwent The Merge, its most ambitious update. Ethereum has now officially switched to a proof-of-stake consensus algorithm.
In the wake of the Merge, Ethereum has generally maintained its September downturn. Today, Ethereum is up 5% in the previous 24 hours, at $1365 – down 25% from its local high of $1,790 on September 11.
From mid-September, ETH established a parallel channel with numerous consecutive lower lows until September 21, when it bottomed at $1,240 and tested the $1,340 resistance level. $1,270, the 0.618 fib retracement level, is ETH’s immediate support.
ETH must break the $1,425 20-day EMA to reverse trend. The RSI, having failed to break out of the 39 ceilings, shows that ETH would enter oversold if it continued down.
Levels
Resistant: $1,350, $1,400, $1,440
Support $1,250, $1,210
Bitcoin Climbs as Traditional Markets Fall
Original Source: Market Wrap: Bitcoin Pushes Higher as Traditional Markets Decline
Bitcoin and ether rise after a weekend decline. Both currencies fell below psychological levels before recovering Monday.
Bitcoin (BTC) regained 1.9% of the 2.52% it lost over the weekend on heavy volume. Monday’s volume increase is an encouraging indicator. BTC trades in a tight range, with up and down days. BTC is trading above $19,000.
Ether (ETH) increased 2.6% and has a high 30-day correlation coefficient (0.78). Correlations vary from 1.0 to -1.0, with 1.0 indicating a direct relationship and -1.0 an inverse one. Given their close association, it’s hardly surprise that ETH and BTC moved in tandem over the weekend. ETH regained $1,300. Since switching to proof-of-stake, the second-largest cryptocurrency by market size has gained 8,400 ETH. Without the swap, ETH supply would have increased by almost 140,000 ETH.
The broad-based CoinDesk Market Index (CMI) climbed 1.6% on the day.
Monday’s economic calendar was quiet before Tuesday’s durable goods and house sales reports.
Two-year Treasury yields reached 4.3%, last seen in August 2007. Two-year and 10-year Treasury yields remain inverted, with the former higher.
An inverted yield curve means investors risk more on short-term lending than long-term financing.
Inverted yield curves have historically predicted economic recessions, which hurt all risk assets, including cryptocurrency.
American stocks: Dow Jones Industrial Average, Nasdaq composite, and S&P 500 fell 1.1%, 0.6%, and 1%, respectively.
WTI crude oil slid 2.4% to below $80 per barrel. Brent crude slipped 2.3% to $85, while natural gas rose 3%. Copper, an economic indicator, sank 1.3%, while gold dipped 1.3%.
Costs
Bitcoin (+1.3%): $19,164 $1,327 +2.6% for Ether CMI: $956 +1.1% 3,655.04 1.0% S&P 500 daily close Gold: $1,630/oz 0.9% Ten-year Treasury yield: 3.88% +0.2 Bitcoin, ether, and gold values are around 4pm NY time. Gold is the COMEX spot price. Bitcoin is the CoinDesk Bitcoin Price Index (XBX). Visit coindesk.com/indices for more information.
Technical Take
Traditional markets fall as BTC rises
Bitcoin is doing well Monday despite volatility in traditional markets. Its durability is interesting given its correlation with the Nasdaq Composite, which is down 0.8% Monday.
Global recession fears weigh on traditional markets Monday. Following news that the Bank of England may raise interest rates aggressively, the pound fell to record lows.
The Bank of England would join a growing list of hawkish central banks, including hefty rate hikes.
BTC is trading where it was in mid-to-late June. Mid-price August’s peak ($24,000) has been followed by a steady drop.
Bullish traders have an opportunity at $19,000, 20% below August’s top.
Derivatives markets aren’t optimistic. Options open interest by strike price showed some appetite for risk, but even that seems to have eroded as call open interest at the $20,000 strike price has decreased.
A call option gives the right but not the obligation to buy an asset at a certain price (strike). Open interest is the number of active contracts investors can use.
The option open interest put/call ratio has also risen, indicating more short-term bearishness for BTC.
Technically, there’s no cause for fear or celebration. BTC’s RSI is neutral at 42.
RSI gauges momentum. Above 70 indicates an asset is trading above fair value; below 30 indicates the opposite. The market values BTC fairly.
Luna Classic, Terra Collapse Remainder, Jumps 60% as Binance Unveils Burn Scheme: The crypto exchange’s new method tries to decrease the LUNC token’s supply, but traders are skeptical. Here’s more.
Cosmos White Paper revamps Hub, ATOM Token: The study highlights interchain security and a new issuance mechanism for ATOM as the keys to saving the initial Cosmos blockchain from its identity dilemma. Latest Disney job ad Hints at NFT, Crypto Adoption: As it extends its Web3 approach, the corporation needs legal aid with crypto, NFT, and DeFi rules. Here’s more.
Bloomberg reports that Interpol red-listed Do Kwon. Kwon says he’s not on the run, but Singapore authorities say he’s not there.
CFTC’s Ooki DAO Action Shatters Illusion of Regulator-Proof Protocol: The action raises unsolved questions about who is accountable when a decentralized autonomous organization commits a crime. Will voting with a governance token be a smoking gun?
NY, CA Join states ordering Nexo to halt yields Seven states have halted Nexo’s “Earn Interest Product” accounts, accusing the company of marketing unregistered securities.
Ether continues to fall as investors wait and watch about future upgrades, Bank of America said.
The Digital Asset Classification Standard (DACS), produced by CoinDesk Indices, classifies digital assets by sector. The CoinDesk Market Index (CMI) measures market capitalization-weighted digital asset market performance, subject to minimum trading and exchange eligibility restrictions.
Bitcoin, Ether Jump 6% as Market Hits $1 Trillion
Original Source: Bitcoin, Ethereum Jump 6% as Market Hits $1 Trillion Mark
Bitcoin (BTC) recaptured $20,000 early Tuesday, sending crypto markets soaring.
Bitcoin, which was trading below $19,000 on Monday, is now at a 10-day high of $20,199, according to CoinGecko.
While investors hope the latest price action signals a new bull run, the asset’s all-time high of $69,000 was established last November. Bitcoin is dropped 57% from its January high and 71% from its record high.
Some investors use the Fear and Greed Index to evaluate market sentiment. At 20 points, it indicates “severe fear.”
Ethereum’s upswing joins Bitcoin’s
Ethereum (ETH) rose 6.4% in the past 24 hours, trading at $1,382 at press time, per CoinGecko.
This is the first major uptick for the second-largest cryptocurrency since September 15.
After the historical merge event, ETH fell from $1,700 to $1,250 on September 22 and hasn’t risen beyond $1,350 since.
The two largest coins reported gains amid surging trade volumes, pushing market worth past $1 trillion.
Uniswap (UNI) is up 16.2% over the day to $6.59, Polkadot (DOT) is up 6.2%, and Solana (SOL) is up 5.3%.
Summary of today’s Bitcoin and Cryptocurrency News
To put it simply, according to Mudrex CEO and co-founder Edul Patel, Bitcoin and Ethereum increased along with the equity markets. The second-largest cryptocurrency, Ethereum, regained its psychological support near $1,300. Bitcoin buyers could seize the initiative above the $19,500 barrier by joining the market after analyzing macroeconomic reasons.
Meanwhile, traditional financial markets are trading lower largely because of global recession fears. The British pound has declined to record lows following news that the Bank of England may raise its interest rates aggressively.
Finally, Ethereum (ETH) has also seen some positive action in the past 24 hours as it jumped 6.4%, trading at $1,382 by press time, per CoinGecko. This is the first meaningful upward movement for the industry’s second-largest cryptocurrency since the network’s shift to a proof-of-stake (PoS) consensus mechanism on September 15.
