Breaking News
Close
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

Bitcoin, Ethereum, Dogecoin Spike As Equities, Dollar Weaken: Is It Time For A Crypto Relief Rally?

Stock Markets May 20, 2022 03:10
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Bitcoin, Ethereum, Dogecoin Spike As Equities, Dollar Weaken: Is It Time For A Crypto Relief Rally?

Bitcoin, Ethereum, and other major coins rose Thursday evening as fears of a bear market in equities and a weaker dollar increased the appeal of the apex coin. The global cryptocurrency market cap rose 4.8% to $1.3 trillion.

Price Performance Of Major Coins Coin 24-hour 7-day Price
Bitcoin (CRYPTO: BTC) 5.4% 4.8% $30,304.18
Ethereum (CRYPTO: ETH) 5.3% 3.1% $2,018.07
Dogecoin (CRYPTO: DOGE) 3.6% 4.9% $0.09
Top 24-Hour Gainers (Data via CoinMarketCap) Cryptocurrency 24-Hour % Change (+/-) Price
Kyber Network Crystal V2 (KNC) +21.2% $2.66
Kadena (KDA) +16.4% $2.67
Helium (HNT) +12% ​​$91.63
See Also: Best Crypto Debit Cards

What Happened: The S&P 500 fell nearly 19% below its all-time high reached earlier in 2022; the index is now hovering near the bear market territory. A decline of 20% below all-time highs is construed to be a bear market by many experts.

S&P 500 and Nasdaq futures traded 0.4% and 0.7% higher, respectively, at press time.

{{2126|The dodollar index, a measure of the greenback’s strength against six other currencies, fell 0.05% lower to 103.74, while U.S. 10-year yields fell to 2.772, the lowest since late April, according to a Reuters report.

OANDA senior market analyst Edward Moya noted the “freefall” in the dollar as investors purchase Treasuries on concerns that the economy is headed for a “rough patch.”

“A weaker dollar and bear market stock fears are making Bitcoin attractive again,” said Moya in a note, seen by Benzinga.

“It seems the fallout from all the stablecoin drama that sent cryptos sharply lower is finally fading. Bitcoin looks poised to consolidate here, but bulls should be happy to see prices are not mimicking what happens with the stock market.”

Pointing to Bitcoin’s Relative Strength Index, Rekt Capital tweeted Thursday, that the indicator is entering a “period that has historically preceded outsized Returns On Investment for long-term investors.”

The cryptocurrency trader said previous reversals from this level were observed in January 2015, December 2018, and March 2020.

Michaël van de Poppe tweeted that due to the recent “heavy crash” there is a chance of 20%-25% relief over the market. The analyst put Bitcoin around $34,000 to $36,000 levels.

The futures market has another story to tell. Bitcoin’s put/call ratio touched a 12-month high with open interest touching a 12-month high of 0.72 this week. This is a bearish indicator, according to Delphi Digital.

BTC Put/Call Ratio On Open Interest and Volume — Courtesy Delphi Digital

The on-chain analysis company said that the put/call ratio touched as high as 0.96 before Bitcoin’s price fell over 50% in May 2021.

The put/call is a measure of the amount of put buying relative to calls. A high ratio means investors are speculating if Bitcoin will continue to sell off or it could point to investors hedging portfolios against a downturn.

Read Next: Jack Dorsey Outlines Block's Bitcoin-Centric Future, Says Company Is No Longer Just A Payment Firm

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read at Benzinga

Read the original article on Benzinga

Bitcoin, Ethereum, Dogecoin Spike As Equities, Dollar Weaken: Is It Time For A Crypto Relief Rally?
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Our Apps
DOWNLOAD APPApp store
Investing.com
© 2007-2022 Fusion Media Limited. All Rights Reserved.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
  • Sign up for FREE and get:
  • Real-Time Alerts
  • Advanced Portfolio Features
  • Personalized Charts
  • Fully-Synced App
Continue with Google
or
Sign up with Email