Buoyant US economy triggers volatility for cryptocurrency markets

CRYPTO markets have pulled back significantly overnight, with Bitcoin and Ethereum both down by more than 4%. Solana is in the red by 11%, while other large-caps are also down.

The CoinDesk Large Cap Select Index, generally a good proxy for the performance of the large-cap markets, is down by more than 4%. 

US stocks also dipped in the last 24 hours, coinciding with the latest retail numbers from the US Commerce Department, released yesterday, showing increased consumer spending in March, leading some economists to believe that the expected interest rate cuts this year could be further delayed.  

In the Markets

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Total crypto market cap

$2.27 trillion (-3.9%)

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What Bitcoin did yesterday

Daily high $66,805 |  Daily low $62,379

Bitcoin market capitalisation

$1.24 trillion (-1.27%)

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Bitcoin volume

$43.9 billion (-1.12%)

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CoinDesk Large Cap Select Index 

-4.73%

The CoinDesk Large Cap Select Index (DLCS) measures the market cap weighted performance of some of the largest cryptocurrencies and gives a general indication of the overall performance of the crypto market. 

SP500

-1.2%

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Fear and Greed Index

60 (Greed) 

The Fear and Greed Index measures volatility, market momentum/ volume, social media, surveys, dominance, and Google search trends to gauge market sentiment.

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Bitcoin’s market dominance

55.51

The Bitcoin Market Dominance indicator measures the percentage of total cryptocurrency market capitalisation represented by Bitcoin at a given time.

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Relative Strength Index (RSI)

62.41

Values of 70 or above indicate that an asset is becoming overbought and may be primed for a trend reversal or experience a correction in price, while 30 or below indicates an oversold or undervalued condition.

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Post Script…

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Cautionary Notes

It’s definitely tempting to get swept up in the excitement, but please heed these words of caution: Do your own research, only invest what you can afford, and make good decisions. The indicators contained in this article will hopefully help in this. Remember though, the content of this article is for information purposes only and is not investment advice or any form of recommendation or invitation. The Digital Commonwealth always advises you to obtain your own independent financial advice before investing or trading in cryptocurrency.