Market leaders stumble as crypto landscape turns a shade of red

THE price of Bitcoin and Ethereum, along with much of crypto, has seen deep pullbacks overnight. Number one and two by market cap are both down by more than 4%. 

The younger generation of cryptos have seen deeper declines, which sees large-caps like Solana down 7% and Avalanche in the red by 8%. The slide has rippled through to the rest of the market. 

Some analysts have pointed to strong numbers on Monday from the US, which sees the US Dollar Index at levels seen in November last year, as a possible reason for the sell-off in crypto markets.

There is often an inverse relationship between the US Dollar and crypto, leading to a decrease in demand for cryptocurrencies as the Dollar strengthens.

Expectations of higher interest rates by the Federal Reserve, signalled by a strong dollar, may also dampen investor sentiment and risk appetite.

In the Markets

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Total crypto market cap

$2.52 trillion (-4.28%)

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What Bitcoin did yesterday

Daily high $69,673 |  Daily low $66,177

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Bitcoin market capitalisation

$1.31 trillion (-4.4%)

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Bitcoin volume

$40.62 billion (+40%)

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CoinDesk Large Cap Select Index 

-4.5%

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. 

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SP500

-0.2%

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Fear and Greed Index

79 (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

53.96

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)

55.85

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.

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