Bitcoin and Ethereum traded higher Tuesday evening, even as the global cryptocurrency market cap fell 1% to $1.3 trillion over 24 hours leading up to press time.
|Cryptocurrency||24-Hour % Change (+/-)||Price|
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Why It Matters: Price action in the two largest coins remained largely rangebound even as other risk assets like stocks spiked Tuesday brushing off recessionary fears.
The latest Atlanta Federal Reserve’s GDPNow tracker indicates a rise of just 0.9% for the second quarter.
In the first quarter of 2022, the GDP growth declined by an annualized 1.5%. A second consecutive quarter of negative growth could meet the criteria for recession.
Equity traders might be pricing a recession in the first quarter of 2024, according to Edward Moya, a senior market analyst with OANDA.
While stocks could piggyback on solid earnings after inflation peaks, cryptocurrencies may break away from equities.
“Bitcoin’s correlation with equities could be breaking and that could lead to greater volatility over the short-term. If Bitcoin falls below the $28,000 level, it could get ugly as prices might not see support until the $25,500 level,” wrote Moya, in a note seen by Benzinga.
Cryptocurrency trader Michaël van de Poppe tweeted that the odds of a relief rally in June are rising with altcoins looking better on a daily timeframe as well. He said there could be a 50-100% relief rally seen in altcoins.
This could be a relief rally of 50-100% on them.
— Michaël van de Poppe (@CryptoMichNL) June 7, 2022
Asian investors have been buying Bitcoin from U.S. and European peers, said Will Clemente on Twitter.
Asia buying BTC from US/Europe after dumping on them at the top. Tale as old as time. pic.twitter.com/DaGvTLIMn1
— Will Clemente (@WClementeIII) June 7, 2022
Meanwhile, the number of Ethereum addresses in loss (7-day moving average) reached an all-time high of 35.7 million, according to data from Glassnode.
Number Of Ethereum Addresses In Loss — Courtesy Glassnode
GlobalBlock analyst Marcus Sotiriou touched on selling by Bitcoin miners in May. “I think this sell pressure from miners could be due to the decline in Bitcoin price, which has decreased the profitability for miners,” he said.
The analyst said he was not concerned by the behavior of the miners as Intel Corporation INTC is releasing second-generation Bitcoin mining chips, which he said are more efficient than rivals.