Bitcoin (BTC) Cools After Weekend Rally, Analyst Says Watch Out For S&P 500 Moves


The two largest coins traded in the red Sunday evening as the global cryptocurrency market cap declined 1.05% to $1.08 trillion at press time.

Price Performance Of Major Coins
Coin 24-hour 7-day Price
Bitcoin BTC/USD -1.6% 3.3% $23,314.77
Ethereum ETH/USD -1.2% 5.1% $1,678.08
Dogecoin DOGE/USD -1.9% 1.45% $0.07

Top 24-Hour Gainers (Data via CoinMarketCap)
Cryptocurrency 24-Hour % Change (+/-) Price
Filecoin (ROSE) +25.1% $9.94
Internet Computer (ICP) +9.5% $9.03
Arweave (AR) +6.2% ​​$15.58

See Also: Best USDC Interest Rates

Why It Matters: Cryptocurrencies, which were buoyant over the weekend, appear to be losing steam heading into a fresh trading week. 

Bitcoin reached a high of $24,572.58 over the weekend and has since contracted 5.1% from those levels.

Cryptocurrencies continue to be aligned with stocks. The S&P and Nasdaq futures were down 0.4% each at press time. Heading into a fresh trading week, investors will keep an eye on a flurry of earnings data and the nonfarm payrolls report from the Bureau of Labor Statistics.

Cryptocurrency investors need to keep an eye on the S&P 500, where the area below 4,200 will be “critical,” according to the trader Justin Bennett.

Bennett pointed to the correlation between Bitcoin and S&P500 and said if there was a selloff on the index, the apex coin was “likely to follow” even if it takes a day or two to do so.

The U.S. Federal Reserve has room for more aggressive hikes as personal income and spending data remain strong, noted Edward Moya, a senior market analyst at OANDA.

“​​A couple more inflation and employment reports will dictate how the data-dependant Fed will behave after the summer,” said Moya, in a note seen by Benzinga.

Even so, there are indications that cryptocurrencies may be shedding the “winter” mindset and gearing up for a continued summer relief rally, he added.

“The ‘crypto winter’ might be over and that is what is needed to allow flows back into the space,” said Moya.

Michaël van de Poppe noted the movement of the so-called altcoins which he said were “breaking out left and right.”   

The cryptocurrency trader said short positions were getting “stopped out or liquidated.” He said, “It’s the Summer relief!”

Investor sentiment indicator Alternative.Me’s “Crypto Fear & Greed Index” showed “Fear” heading into the fresh trading week. The index was at 33 at press time, while last week it was at 30 — a value of 0 means “Extreme Fear” and 100 “Extreme Greed.”

Decentralized finance pioneer Yearn.Finance’s (YRN) token crossed the $10,000 barrier for the first time since May 16 as the DeFi asset decoupled from other altcoins, said Santiment.

The market intelligence platform tweeted, “Keep an eye on the addresses holding $1m or more in $YFI, as there have been declines in their holdings.

Read Next: Here’s Why Bitcoin Could Blast Higher If This Trend Confirms

Photo by leksiv on Shutterstock


Image and article originally from Read the original article here.