Cryptocurrencies were seen surging Tuesday night as the global cryptocurrency market capitalization surged 2.7% to $970 billion as of 8:17 p.m. EDT.
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Because it is important: Cryptocurrencies followed the gains in stocks on Tuesday, as the S&P 500 and Nasdaq closed 3.1% and 3.3% higher, respectively. At the time of writing, US stock futures were slightly in the red.
The return of risk appetite was triggered by PMI figures released this week, which indicate weakness. Traders speculated that this could prompt central banks to become more dovish.
“If that sounds like a straw, that’s probably because it is, but equity markets have had a rough ride lately and that can’t last forever,” he said. craig erlamSenior Market Analyst at OANDA.
In particular, on Tuesday, the Reserve Bank of Australia raised interest rates 25 basis points lower than expected, pointing to earlier substantial increases, reported Reuters.
“The slight disconnect between Bitcoin and other risk assets recently has been interesting. We have seen more resilience during downturns and apparently less enthusiasm during rallies,” Erlam said, in a note seen by Benzinga.
“It will be interesting to see if this relationship holds up and what that means going forward.”
Among coins with large market capitalization, Dogecoin saw sizeable gains on an intraday basis. The pioneering memecoin rose after Tesla Inc. TSLA CEO Elon Musk revived Twitter’s buyout offer for $54.20 a share.
Musk, a DOGE bull, is said to gravitate towards integrating the memecoin into Twitter in case he owns the jack dorsey-Social media platform founded.
Dogecoin whale transactions and funding rates soared, both harbingers of a change in price direction, the market intelligence platform tweeted. Holy on Tuesday.
#dogecoin is up a solid +9% in the last day and a half, and the #memecoin is still ranked as the 10th largest market cap asset in #crypto. Whale transactions and funding rates have skyrocketed, which are two big predictors of price reversal. https://t.co/k3voMpSH3k pic.twitter.com/uGi7Zg8Sig
— Santiment (@santimentfeed) October 4, 2022
Michael van de Poppe He said it’s time for the dollar index, a measure of the dollar’s strength against six of its peers, to see a “slight rebound.”
It’s time for a slight bounce in the $DXY and a correction in the crypto markets.
But more importantly, I expect the unemployment data to be bad on Friday and then the indices should continue.
The relief rally in the fourth quarter is on the horizon for #bitcoin.
— Michael van de Poppe (@CryptoMichNL) October 4, 2022
The Amsterdam-based crypto trader said he expects poor unemployment figures on Friday and then expects the indices to continue.
“Q4 relief rally is on the horizon for” Bitcoin, van de Poppe tweeted.
Meanwhile, Bitcoin miners are on the verge of “acute income stress,” according to the on-chain analytics firm. glass nodewho used the difficulty regression model to reach that conclusion.
#bitcoin it has been trading very close to its estimated cost of production price since the June sell-off.
The Difficulty Regression Model is around $18,300 and points to a potential threshold for acute revenue stress in the mining industry.
read morehttps://t.co/Lv9ObNnyFE pic.twitter.com/jsAmXjtgSH
– glass node (@glassnode) October 3, 2022
The model is an estimate of the total cost of maintaining the production of the main currency. Glassnode tweeted that Bitcoin has been “trading very close to its estimated cost of production price since the June sell-off.”
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