Bitcoin and ether but traded flat Dogecoins surged as the global cryptocurrency market cap fell 0.9% to $1 trillion at press time.
| coin | 24 hours | 7 days | Price |
|---|---|---|---|
| Bitcoin BTC/USD | 0.07% | fifteen% | $23,314.57 |
| ether ETH/USD | -0.12% | 37.4% | $1,529.80 |
| Dogecoins DOGE/USD | 2.6% | 13.5% | $0.07 |
| cryptocurrency | 24-hour % change (+/-) | Price |
|---|---|---|
| Lido DAO (I DO) | +5.75% | $1.59 |
| Monero (XMR) | +2.9% | $151.44 |
| Dogecoins (DOG) | +2.6% | $0.07 |
See also: Best Crypto Debit Cards
Why it matters: The two major coins showed weakness on Wednesday night, along with stocks that closed higher for the day but lost momentum in the after-hours session.
The S&P 500 and Nasdaq futures were each down 0.3% at press time as investors digested a slew of gains. For the day, the S&P 500 closed 0.6% higher, while the tech-heavy Nasdaq shot up 1.6%.
Macroeconomic headwinds continue to blow against Bitcoin, but “peak pessimism” is about to be priced in, said OANDA’s senior market analyst Edward Moya.
“Risks remain elevated, but now bitcoin sits at the $24,000 level and selling pressure appears to be throwing in the towel for now,” Moya said in a note seen on Benzinga on Tuesday.
In a profit announcementElon Musk-led car manufacturer Tesla Inc TSLA said it sold 75% of its Bitcoin holdings, raising $963 million from the sale. Last year, it bought $1.5 billion of the Apex coin.
Michael van de Poppe said on Twitter that the sale of Tesla was one of the contributors to the recent Bitcoin crash. He said this is also “the reason why we are close to the ground”.
So not just forced sale of 3AC, $LUNA & $USTbut Voyager, BlockFi, and Celsius have also crashed the markets.
In addition, Tesla has sold 75% of its shares #Bitcoin Purchases for cash.
That caused the crash.
That’s also why we’re at the bottom.
— Michaël van de Poppe (@CryptoMichNL) July 20, 2022
In a separate tweet, the cryptocurrency trader noted that Tesla’s cash flow “would likely be negative” without the earnings from Bitcoin.
In the Official Cash Flow Statement & Earnings.
In some cases, profits were squeezed further upwards $TSLA because of the income #Bitcoin.
This means that without the earnings, their cash flow would likely be negative $BTC. pic.twitter.com/yo1HXw8VbB
— Michaël van de Poppe (@CryptoMichNL) July 20, 2022
co-dealer Justin Bennett warned investors that markets are looking “a little top-heavy”. He said, “Maybe there’s a flood of long songs here. Be careful.”
The markets are looking a bit top-heavy.
Perhaps a barrage of late longs longs here. Be careful.
— Justin Bennett (@JustinBennettFX) July 20, 2022
chartist Ali Martinez said that Tom Demark (TD) Sequential, a tool that can help pinpoint the exact timing of trend exhaustion and price reversals, is showing a “sell signal” for Bitcoin on its four-hour chart.
“A sustained four hour candle close below $23,600 may trigger a correction for [BTC] to $22,500 or even $21,670.”
Approach #Bitcoin with caution!
The TD Sequential displays a sell signal $BTC Four hour chart. A sustained four hour candle close below $23,600 may trigger a correction for #BTC to $22,500 or even $21,670. pic.twitter.com/INZKFAeJJm
— Ali Martinez (@ali_charts) July 20, 2022
Meanwhile, Ethereum’s profit booking has been more robust than Bitcoin’s as the two assets recently diverged. Ethereum has seen far more signs of profit taking. The relationship between transactions in profit and loss paints two very different pictures for the assets with the highest market capitalization in [cryptocurrencies]’ tweeted Santiment, a market research platform.
Both #Bitcoin and #Ether I had a great rebound month here in July, but $ETH has seen far more signs of profit taking. The relationship between transactions in profit and loss paints two very different pictures for the assets with the highest market capitalization in #crypto. https://t.co/BM1YzNaAwi pic.twitter.com/fGHizkLmFk
— Santiment (@santimentfeed) July 20, 2022
Continue reading: Michael Saylor Comments on Tesla’s Bitcoin Sale: How Much Did Tesla Really Sell?