Markets
Bitcoin Recovers Above $62K, Ethereum and Dogecoin Also Rise: What’s Driving the Crypto Market Up?
May 9, 2024 10:12 pm | 2 minutes of reading |
Top cryptocurrencies rose on Thursday night as the latest data on unemployment insurance claims fueled hopes of rate cuts among risk-off investors.
| Cryptocurrency | Earnings +/- | Price (recorded at 8:45 p.m. EDT) |
| Bitcoin (CRYPTO: Bitcoin) | +2.43% | $62,817 |
| Ethereum (CRYPTO: ETH) | +1.39% | US$3,025.76 |
| Dogecoin (CRYPTO: DOGE) | +4.60% | $0.151 |
What happened: Bitcoin, the market bellwether, has recovered above $62,000, reversing a three-day corrective phase that saw it fall to $60,000.
The rally has sparked speculative interest in the currency, with open interest on Bitcoin’s largest derivatives exchange, the Chicago Mercantile Exchange, rising 1.83% in the last 24 hours.
However, derivatives traders have chosen to bet against the market, with the number of traders taking bearish short positions on the leading cryptocurrency significantly outnumbering those who bet on its price rising over the past 24 hours.
The largest memecoin by market value, Dogecoin gained 4.6% in the last 24 hours.
Top Earners (24 hours)
| Cryptocurrency | Earnings +/- | Price (recorded at 8:45 p.m. EDT) |
| Akash Network (AKT) | +29.32% | $5.89 |
| The graph (GRT) | +12.87% | $0.297 |
| THORChain (RUNE) | +10.70% | $6.33 |
The global cryptocurrency market cap was $2.32 trillion at last check, up 2% in 24 hours.
Stock markets rose during the day following higher-than-expected US unemployment benefit claims data. The Dow Jones Industrial Average rose for the seventh consecutive day, up 0.85%, closing at 39,387.76 points. The S&P 500 gained 0.51% to end at 5,214.08, while the tech-heavy Nasdaq Composite rose 0.27% to end at 16,346.26.
New data revealed initial claims for unemployment benefits at 231,000 in the week ending May 4, a figure higher than the market estimate and the highest since late August 2023.
View more: Best Cryptocurrency Scanners
Analyst Notes: Rekt Capitala prominent cryptocurrency analyst and trader, described Bitcoin’s current decline as the deepest at 23.6%, surpassing the 22.9% pullback from early 2023.
The analyst also highlighted that this was one of the longest pullbacks of the cycle, with the corrective phase lasting almost 50 days.
Deepest downturn in this cycle?
This current pullback is officially the deepest (-23.6%), recently surpassing the -22.9% pullback from early 2023
The longest pullback this cycle?
63 days
This current pullback is -23.6% deep and nearly 50 days long
Bitcoin already… pic.twitter.com/vAz7N16ZdE
-Rekt Capital (@rektcapital) May 9, 2024
On-chain analytics firm Santiment noted that sentiment towards the market’s major coins was still negative.
The mood has changed drastically since the last Bitcoin halving, the company added, before which an openly “greed” vibe dominated the market.
However, just as over-optimism paved the way for a correction, the current Fear, Uncertainty and Doubt (FUD) could ultimately lead to a recovery.
Image via Shutterstock
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