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Major currencies have slumped sharply with Ethereum down more than 10% on a day in which the global cryptocurrency market capitalization has fallen 10.25% to $1.3 trillion at press time.
|Currency||24 hours||7 days||Price|
|ethereum (CRYPTO: ETH)||-10.8%||-28.5%||$2,103.63|
|Dogecoin (CRYPTO: DOGE)||-21.56%||-36.5%||$0.09|
|cryptocurrency||% change in 24 hours (+/-)||Price|
Because it is important
On Wednesday, the work Department reported an 8.3% increase in the consumer price index in April, indicating that inflation remains high and is near 40-year highs. However, the figure moderated from the 8.5% reported in March.
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On Wednesday, the 10-year Treasury yield rose 3.1 basis points to 3.025%, while the 2-year note, a gauge of the Fed’s rate forecast, hit a three-year high. 2.858%, according to information from Reuters.
Risk assets were trading in the red after the inflation report was released on Wednesday, with the S&P 500 and NASDAQ down 1.65% and 3.2%, respectively. At press time, US stock futures were slightly higher. Bitcoin was trading below the psychologically important $30,000 mark.
“Bitcoin remains highly vulnerable to further selling pressure and could post more technical sell-off if the $28,500 level is breached,” he said. Edward MoyaSenior Market Analyst at OANDAin a note to which Benzinga has had access.
The analyst of GlobalBlock, Marcus Sotiriouhas noted that in addition to macroeconomic headwinds, there is a “fundamental risk” to the cryptocurrency industry after Terra USD (UST) loses its peg to the dollar.
“The impact of this event on the broader market is very significant. We will soon find out which DeFi projects had their treasuries pegged or UST, which resulted in the pushback of prominent protocols,” Sotiriou said.
Peter Brandt, trader Futures broker and CEO of Factor LLC, has commented that the BTC volume surge may be indicative of “capitulation and the beginning of the end of the year-long slump.” Brandt has added that he had previously pointed to $27,000 as a possible minimum.
This is the type of volume spike that can indicate puke-out capitulation and the beginning of the end of the one-year decline. Can the carnage continue? Anything is possible — and that includes a local bottom. I’ve mentioned 27,000 area as possible low, and that could be $BTC pic.twitter.com/FnzDn1PHgs
— Peter Brandt (@PeterLBrandt) May 11, 2022
At the time of publishing this article, Bitcoin’s 24-hour trading volume is up 29.3% to $73.42 billion, according to data from CoinMarketCap.
Brandt tweeted on April 8 that if Bitcoin hit $27,111, he would put “laser eyes” on his Twitter photo.
Hey Jeff @VailshireCap
Hope your time @TheBitcoinConf is wonderful
IF (IF, IF, not a prediction) $BTC goes to 27,111 my Twitter picture will be changed — laser eyes will be added pic.twitter.com/ABzgZYhiBS
— Peter Brandt (@PeterLBrandt) April 7, 2022
The trader of cryptocurrencies Michael van de Poppe has stated that we are close to “capitulation” in the markets.
Capitulation on the markets. We’re close.
— Michael van de Poppe (@CryptoMichNL) May 11, 2022
On the other hand, as Ethereum hovers around the psychologically important $2,000 mark, the whales have been “extremely active,” according to a tweet from Santimentthe market intelligence platform.
#Ethereum‘s whales have been extremely active today, firing off 2,596 transactions valued at $1M or more. This is the highest day of whale transactions since January, and something to monitor if $ETH drops below $2k for the first time since last July. https://t.co/FZoTsFJwEn pic.twitter.com/MVFEpzysxN
— Santiment (@santimentfeed) May 11, 2022