Benzinga - Major coins traded in the red on Monday amid growing apprehension among investors, who are keeping a close watch on the Federal Open Market Committee (FOMC) meeting scheduled for next week.
| Cryptocurrency | Gains (+/-) | Price (Recorded 9:30 p.m. EST) |
| Bitcoin (CRYPTO: BTC) | -1.06% | $27,460 |
| Ethereum (CRYPTO: ETH) | -1.70% | $1,840 |
| Dogecoin (CRYPTO: DOGE) | -1.12% | $0.078 |
What Happened: In light of the Shanghai upgrade to the Ethereum protocol, we’ve seen an influx of stakers reinvesting their rewards, resulting in record-breaking inflows. However, despite this surge in activity, ETH's position has remained relatively unchanged. According to the latest data dashboard from Dune Analytics, investors have deposited 571,950 ETH tokens into staking contracts, which translates to $1 billion in value.
At the time of writing, the global crypto market capitalization stood at $1.16 trillion, down by 1.35% over the last day.
See More: Best Crypto Day Trading Strategies
The U.S. stock market on Monday witnessed mixed reactions as traders waited for the earnings announcements from several Big Tech firms and consumer discretionary names, coupled with the release of new economic data. Notably, the Nasdaq Composite, known for its heavy concentration in technology stocks, slightly decreased by 0.29% during the regular session. In contrast, the S&P 500 improved slightly, ticking up by 0.09%.
News Highlights: Coinbase (NASDAQ:COIN) has taken legal action by filing a petition in a U.S. federal court. The objective of this petition is to compel the Securities and Exchange Commission (SEC) to provide a definitive response to Coinbase’s request for improved regulatory guidelines in the sector. Specifically, the exchange’s July 2022 petition included 50 precise inquiries regarding the regulatory treatment of specific digital assets. The exchange is determined to receive a straightforward “yes or no” response from the SEC.
Analyst Notes: “Bitcoin remains heavy until investors get any clarity with the US regulatory path on cryptos,” said Edward Moya, Senior Market Analyst at OANDA.
“Crypto investment is seeing outflows and overall momentum or interest in the space has stalled. Until crypto traders see a clear positive development on the regulatory side, Bitcoin might remain stuck in a consolidation, currently trying to find the lower boundaries of its trading range,” he added.
Crypto analyst Michael Van de Poppe observes that the price action of Bitcoin is beginning to resemble that of February. Recently, Bitcoin was rejected at the $27,800-mark, followed by a drop to $27,000, and a subsequent sweep of the low. However, if the market can generate higher lows from this point on, there is a high chance that Bitcoin will break above the $27,800-resistance level, leading the rally to continue up to $30,000.
Price action starts to act similar to the price action in February for #Bitcoin.Rejection at $27,800, another sweep of the low and hit $27,000.
If we can generate higher lows after this, it seems very likely that we'll break $27,800 and rally to $30,000 from there. pic.twitter.com/6TofkGNWMF
— Michaël van de Poppe (@CryptoMichNL) April 24, 2023
According to analyst Justin Bennett, there are more opportunities for the BTC range early this week. It’s worth noting that if BTC breaks below $26,500, the next significant level will be its quarterly open. As of now, however, Bennett advises a bearish approach as long as BTC remains below $28,800.
Read Next: Jim Cramer Advises Against Using Binance, Provokes Strong Reactions From Twitter Users
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.