Markets
Bitcoin, Ethereum and Dogecoin Sink on Inflation Concerns in Fed Minutes: Analyst Says Odds Are ‘In Favor’ of King Crypto Bulls
May 22, 2024 10:17 pm | 2 minutes of reading
Major cryptocurrencies fell on Wednesday as investors reacted to the Federal Reserve’s concerns about inflation in the minutes of the recent policy meeting.
| Cryptocurrency | Earnings +/- | Price (recorded at 8:30 p.m. EDT) |
| Bitcoin (CRYPTO: Bitcoin) | -1.12% | $69,412 |
| Ethereum (CRYPTO: ETH) | -1.12% | $3,752.29 |
| Dogecoin (CRYPTO: DOGE) | -3.79% | $0.1659 |
What happened: Bitcoin hovered below the $70,000 market after raising hopes of breaking its all-time high earlier this week. Ethereum remained unstable in the $3,750 – $3,800 zone.
In the last 24 hours, more than 61,000 traders have been liquidated, with the total liquidation exceeding $156 million. Ethereum led the pack with around $42.85 million in settlements.
The euphoria seen at the start of the week has started to wane, with open interest on Bitcoin futures falling 0.53% in the last 24 hours. A sharper decline of 2.20% was observed on the Chicago Mercantile Exchange – the largest Bitcoin derivatives exchange in the world.
Market sentiment remained “extremely greedy” despite the decline seen in major cryptocurrencies.
Meanwhile, in a crucial step toward regulatory clarity for the crypto industry in the US, the House passed a landmark bill that sets clear guidelines for what would make a token a commodity or security.
Biggest earner (24 hours)
| Cryptocurrency | Earnings +/- | Price (recorded at 8:30 p.m. EDT) |
| dog with hat (WIF) | +6.81% | $2.98 |
| BOOK OF MEMES (GOOD) | +5.52% | $0.01358 |
| Gala (GALA) | +4.86% | $0.04578 |
The global cryptocurrency market value is $2.6 trillion, after a 0.43% drop in the last 24 hours.
The stock market fell on Wednesday. O Dow Jones Industrial Average fell 201.95 points, or 0.51%, to end at 39,671.04, recording its worst session of the month. O S&P 500 fell 0.27% to close at 5,307.01, while the technology-focused Nasdaq Composite lost 0.18% to end at 16,801.54.
Negative sentiment permeated as the minutes of the Federal Reserve’s policy meeting signaled concerns about the lack of progress on inflation, increasing investor fears about a future tightening of monetary policy.
View more: Best Cryptocurrency Scanners
Analyst Notes: Prominent cryptocurrency analyst and trader Ali Martinez noted that Bitcoin was facing “minimal resistance.” He drew attention to the importance of the zone between $70,180 and $70,600, where more than 450,000 addresses captured 273,000 BTC.
“With strong support levels, the odds are in the bulls’ favor,” Martinez noted.
Read next: Is Donald Trump accepting crypto donations ‘just another cow for him to milk?’
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