Benzinga - Major coins traded mixed on Tuesday evening as investors await Wednesday’s latest U.S. inflation report.
| Cryptocurrency | Gains +/- | Price (Recorded 9:30 p.m. EST) |
| Bitcoin (CRYPTO: BTC) | +0.11% | $27,701 |
| Ethereum (CRYPTO: ETH) | -0.05% | $1,850 |
| Dogecoin (CRYPTO: DOGE) | +0.83% | $0.073 |
What Happened: As June’s policy meeting for the Federal Reserve approaches, all investors will certainly keep a close eye on the CPI for indications of the Fed’s actions. The Federal Reserve has already approved a significant 25 basis points hike, resulting in the highest Federal Funds rate in 16 years.
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This move has sparked heightened interest amongst investors looking to get a pulse of the market, making the upcoming CPI data all the more pivotal in shaping market strategies and long-term investment plans.
At the time of writing, the global cryptocurrency market capitalization stood at $1.14 trillion, an increase of 0.09% over the last day.
U.S. stocks closed on a lower note on Tuesday as investors braced themselves for the highly anticipated inflation reports expected later this week. Adding to the mix was the news of progress on the U.S. debt limit, causing some market anxiety. The S&P 500 witnessed a dip of 0.46% while the Nasdaq Composite saw a drop of 0.6%.
Analyst Notes: “Bitcoin was around in 2011 when the S&P downgraded the credit rating of the US. At the time, no one was closely following cryptos, but it is interesting to see prices were dragged down during the summer of 2011. If market stress becomes a growing theme as debt ceiling talks continue, it will be interesting to see how Bitcoin performs. The macro backdrop has been mostly unchanged over the past couple weeks, with a big focus on Binance and whether people are seriously storing cryptos in cold wallets,” said Edward Moya, senior market analyst at OANDA.
He added, “Bitcoin appears to be stuck in a trading range, but if we have a de-risking moment on Wall Street, will that be enough to send cryptos toward the lows seen in mid-March.”
According to crypto trader Michael Van De Poppe, Bitcoin is still hovering without a clear direction and has recently been rejected at the $27,800 level. Should prices dip further, it could lead to a bullish divergence and could be a sound opportunity for long positions. “Altcoins are getting sold off massively.”
#Bitcoin still chopping around and rejected the level at $27,800 again.A sweep of the lows would potentially create a bullish divergence and long arguments. #altcoins getting sold off massively. pic.twitter.com/fB8rDlj4XM
— Michaël van de Poppe (@CryptoMichNL) May 9, 2023
A renowned crypto analyst is cautioning investors about the potential negative impact of Warren Buffett‘s sizable stock sell-off on Bitcoin and other high-risk assets.
In a video update addressed to his 511,000 YouTube subscribers, Nicholas Merten, the host of DataDash, posts that Buffett’s decision to dump billions of dollars in stocks is a “bad signal” for Bitcoin. Merten further suggests that Bitcoin’s recent rally may “lose momentum.”
“Warren Buffett is usually buying when there's blood in the streets. He's usually buying early on during the start of a new cycle. Warren Buffett, Berkshire Hathaway as a whole, his company, is sitting on a massive pile of cash, one of the biggest piles it's ever had before. And you would think that they're going out on a buying spree. Nope, over the last quarter, Berkshire Hathaway sold billions in stocks,” he said.
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