Why Bitcoin (BTC), Etherem (ETH) Are Spiking Today

Bitcoin and Ethereum spiked Thursday evening as the global cryptocurrency market cap increased 5.2% to $929.8 billion at press time.

Price Performance Of Major Coins
coin 24-hour 7-day price
Bitcoin BTC/USD 5.5% 3.4% $21,086.68
Ethereum ETH/USD 8.7% 7% $1,143.38
dogecoin DOGE/USD 3.8% 16.6% $0.06
Top 24-Hour Gainers (Data via CoinMarketCap)
cryptocurrency 24-Hour % Change (+/-) price
Storj (STORJ) +49.6% $0.93
THORChain (RUNE) +22.7% $2.17
polygon (MATIC) +22.6% $0.56

See Also: Best USDC Interest Rates

Why It Matters: Cryptocurrencies continue to shadow stocks. On Thursday the S&P 500 and Nasdaq ended the day 0.95% and 1.6% higher as stocks shrugged off bearishness and looked to rally.

“Bitcoin remains anchored around the $20,000 level as Wall Street tries to figure out how aggressive the Fed will be to fight widespread inflation,” said Edward Moyaa senior market analyst with OANDA.

Moya said that Bitcoin is unlikely to trade on “crypto fundamentals” until a firm bottom is agreed upon in US stocks.

“Bitcoin’s longer-term outlook is for much higher prices, but no one is confident that the bottom is in place. Bitcoin will remain a volatile trade and the correlation with equities seems like it will last for quite a while.”

Bitcoin and Ethereum values ​​have entered 55.8% and 69.7%, respectively, since the year began.

The drawdown from the apex coin’s all-time high touched 73.3% compared to the previous bear market lows of between 75% and 84%, noted Glassnode in a tweet.

The on-chain analysis company said the duration of this bear market is 435 days from the April 2021 all-time high and 227 days from the November 2021 all-time high.

“This firmly places the current bear within historical bear norms,” said Glassnode.

cryptocurrency trader Justin Bennett tweeted, “We either get an immediate breakdown in the next 24-48 hours or a fakeout above resistance in the next few days.”

Bennett said an escape from the $16,000 to $17,000 areas is unlikely for Bitcoin.

Yet another trader, Michael van de Poppe is more positive on the apex coin. He said Bitcoin is ready for $23,000.

Van de Poppe said that while the consensus is that “we’ll be doing way lower and people continue to spread that idea,” it is mainly due to the fact they’ve heard it online.

“Just like they have been [hearing] from strangers on the interwebs that they should buy crypto, when it was [at its] peak [in] 2021.”

Meanwhile, on the Ethereum side, on-chain data indicates that the most significant support level for the second-largest coin is at $1,140 where 454,000 addresses bought 6.65 million ETH, chartist Ali Martinez tweeted.

Ethereum “must hold above this demand zone to advance toward $1,500,” said Martinez.

Read Next: Veteran Investor Thinks Bitcoin Provides Good Cues For Stock Market Bottom

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