BTC, ETH and DOGE surge after inflation data

BTC, ETH and DOGE surge after inflation data

Bitcoin and Ethereum are trading above key psychological levels of $40,000 and $3,000, respectively.

Bitcoin and Ethereum traded above key psychological levels of $3,000 and $3,000 respectively on Tuesday night, with global cryptocurrency prices up 1.9% 1.9 40 厎

Price performance of major tokens
Currency 24 hours 7 days Price
bitcoin bitcoin

1.1% -10.6% $40,149.63
Ethereum Ethereum

1.6% -8.3% $3,035.87
Dogecoin Governor

2.7% -15.9% $0.14
Top winners over a 24-hour period (CoinMarketCap data)
Percentage change (+/-) price of cryptocurrencies over a 24-hour period
Shiba Inu (SHIB) +20.9% $0.000027
Composite (COMP) +9.7% $129.48
Moonlight (GLMR) +16.8% $3.7
because it matters
Risk assets such as stocks came under some pressure on Tuesday after the Labor Department reported that the consumer price index (CPI) rose 8.5% in March, the highest reading since 1981.

“If geopolitical risks improve and the market expects that the Fed won’t have to tighten policy aggressively and push the U.S. economy into recession, inflation will resolve itself,” said Edward Moya, senior market analyst at OANDA.

Regarding Bitcoin, Moya said the digital asset is trying to hold on to the $40,000 level, “as crypto investors worry that a continued sell-off in the bond market could lead to a drop in risk assets. And it could trigger another blow to cryptocurrencies.”

In a report seen by Benzinga, the analyst said a large number of institutional investors are buying bitcoin in 2021, when the price of bitcoin is between $30,000 and $40,000, suggesting they can buy if they believe the forecast. Enter this falling long-term currency apex.

Rising U.S. Treasury yields have strengthened the greenback after the U.S. dollar index, which measures the greenback’s strength against six currencies, touched the 100 level in recent days and rose more than 8% in 2022.

On Tuesday, crypto trader Michaël van de Poppe took to Twitter to ask if a potential bearish divergence [] in the U.S. dollar index would “trigger some bullish momentum” for Bitcoin.

Technical traders use divergences to explore market momentum. A bearish divergence could signal a possible downtrend if the price rebounds to a new high and the oscillator refuses to make a new high.

Glassnode said in its weekly letter that on-chain activity points to weakness and modest but sustained profit-taking, which is slowing Bitcoin’s recovery

According to the analytics firm, Bitcoin transactions totaled nearly 225,000 transactions per day, comparable to the 2019 bear market. The lack of on-chain activity supports Bitcoin’s lack of network congestion and pays lower total transaction fees.

Entity-Adjusted Bitcoin Transactions – Courtesy of Glassnode

“So far, the recovery has been relatively lackluster and continues to be a market dominated by Hodlers, almost new investors,” Glassnode wrote. . . . . . . . . . Dao means to say

Bitcoin and Ethereum are trading above key psychological levels of $40,000 and $3,000, respectively.

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