Major coins were on the rise Monday night as the global cryptocurrency market cap rose 2.6% to $945 billion in the 24-hour period ending at 8:08 p.m. EDT.
|mint||24 hours||7 days||Price|
|Bitcoin (CRYPTO: BTC)||3.5%||2.3%||$19,648.91|
|Cryptocurrency||24 hours % change (+/-)||Price|
Also see: The best crypto debit cards
Why this is important: Cryptocurrencies rose along with other high-risk assets such as stocks on Monday as the S&P 500 and Nasdaq ended their respective sessions higher 2.6% and 2.3%. At the time of writing, US stock futures are slightly in the green.
On Monday, the ISM Manufacturing PMI fell unexpectedly from 52.8 last month to 50.9. Analysts had expected a reading of 52.2.
Said on the ISM numbers Edward Moyaa senior market analyst at OANDA: “The Federal Reserve’s tightening is working and starting to impact more parts of the economy.”
“Bitcoin is slightly higher as risky assets rise after a global collection of declining manufacturing data supports the idea that central banks need not continue to be so aggressive with monetary tightening,” Moya said in a note reviewed by Benzinga.
“Bitcoin has outperformed equities in recent weeks, so today’s sharp moves in the stock market should come as no surprise. Despite some signs of downward pressure on inflation, Bitcoin is still poised to remain in a consolidation pattern.
Moya said, “Calls for a Fed pivot are premature and that should put a cap on how risky assets can go here.”
Michael van de Poppe sees a crucial resistance between USD 19,600 and USD 19,750 for Bitcoin. If Apex Coin breaks this resistance, it could then reach $20,100 and $20,700.
“For long positions, $19,300 is the perfect area to look at, but it wouldn’t be a bad idea to go a bit higher,” said the cryptocurrency trader.
A crucial resistance between $19,600-19,750 for #Bitcoin.
If that breaks, $20,100 and $20,700 are the next targets.
For a long position, $19,300 is the perfect area, but it wouldn’t hurt to go a bit higher.
A break above $19,600-19,750 means the 200 week MA market cap should be recaptured. pic.twitter.com/RHuOZm46tp
— Michael van de Poppe (@CryptoMichNL) October 3, 2022
Meanwhile, the correlation between bitcoin and gold has reached its highest level in more than a year, according to a note from Kaiko research.
The cryptocurrency market data provider said Bitcoin has remained uncorrelated with gold over the past year, with the correlation ranging from negative 0.2 to positive 0.2.
Bitcoin’s Correlation with Gold – Courtesy of Kaiko Research
“As the US dollar strengthens, negatively impacting both cryptocurrencies and gold, the correlation between the two assets has shifted.”
Gold is down nearly 10% year-to-date, while bitcoin is down 58.8% over the same period.
The dollar index, a measure of the dollar’s strength against a basket of six currencies, looks “relatively weak,” he said. Justin Bennett, a cryptocurrency trader. At the time of writing, the Dollar Index was down 0.05% at 111.69.
He tweeted that this gives stocks and cryptocurrencies “room to breathe”.
Of the $DXY still looks relatively weak.
— Justin Bennett (@JustinBennettFX) October 3, 2022
According to Glassnode, Bitcoin’s hash rate hit a new all-time high in September.
The on-chain analytics company explained in a blog post that the hash rate reached an all-time high of 242 exahash per second. The hash rate is an indication of the computing power required by the Bitcoin network to process transactions.
The average hash rate of Bitcoin – Courtesy of Glassnode
“To give an analogy for scale, this equates to all 7.753 billion people on Earth, each performing a SHA-256 hash calculation about 30 billion times per second. These are extraordinarily large numbers,” said Glassnode.
The increase in hash rate has been attributed by Glassnode to “more efficient mining hardware coming online and/or miners with better balances having a greater stake in the hash stream network.”
Referring to an indicator known as the Hash Ribbon, which indicates the health of the Bitcoin network, Glassnode said, “Almost all of the historic Hash Ribbon settlements preceded greener pastures in the months that followed.
Bitcoin Hash Ribbon — Courtesy of Glassnode
Bitcoin supply is moving further away from exchanges – a sign Santiment interprets as a sign that traders are comfortable with their current positions.
“With less than 9% of $BTC on exchanges for the first time since 2018, this bodes well for bulls,” the market intelligence platform said on Twitter.
#Bitcoin continues to see supply pull away from the exchanges as traders show further signs that they are happy with their current holdings. With less than 9% of $BTC on the exchanges for the first time since 2018, this is a good vote of confidence for bulls. https://t.co/4GojZRcaUY pic.twitter.com/d5rw8kHC5T
— Santiment (@santimentfeed) October 3, 2022
Read more: SEC Fines Kim Kardashian For ‘Illegal Advertising’ Crypto Security: Here’s How Much It Will Cost Her
Buy, hold or sell Ethereum?
How will Ethereum develop now? Is an entry worthwhile or should investors rather sell? Find out the answers to these questions and why you should trade now in the current Ethereum analysis.