Analyst Sees ‘Massive Opportunity’ In Bitcoin On Plunge
Bitcoin and Ethereum traded sharply lower on Monday evening as the global cryptocurrency market cap fell 5.9% to $1.8 trillion at press time.
| Coin | 24-hour | 7-day | Price |
|---|---|---|---|
| Bitcoin BTC/USD | -5.95% | -14.8% | $39,703.97 |
| Ethereum ETH/USD | -6.7% | -15% | $2,989.47 |
| Dogecoin DOGE/USD | -9.6% | -9.2% | $0.135 |
Top Gainers Over 24 Hours
| Cryptocurrency | 24-Hour % Change (+/-) | Price |
|---|---|---|
| NEAR Protocol (NEAR) | 16.1% | $17.24 |
| Mina (MINA) | +12.1% | $3.47 |
| Ethereum Classic (ETC) | +10.75% | $43.61 |
See Also: How To Buy Bitcoin (BTC)
Why It Matters: Both Bitcoin and Ethereum slipped below psychologically important levels. The apex cryptocurrency traded below the $40,000 mark, while Ethereum was below $3,000 at press time.
The yield on the benchmark 10-year U.S. Treasury bonds touched 2.793%, its highest level in more than three years, as investors awaited inflation data. The yield was also on track to rise for the seventh straight day, according to a Reuters report.
“Bitcoin is under pressure as the bond market selloff resumed, prompting a widespread selling of risky assets,” said Edward Moya, a senior market analyst with OANDA.
“Bitcoin is struggling here as rising rates are leading to a de-risking moment for many traders. With no momentum from the Bitcoin 2022 conference, the focus shifts to inflation, and expectations are for a very hot report that will probably be the peak.”
An April Reuters poll of 100 economists forecasts two half-point rate rises in 2022, which will be the first such move by the U.S. Federal Reserve since 1994. A majority of those polled expect a 50 basis points hike in May. Similarly, a 50 bps rate hike is also expected in June, according to a separate Reuters report.
Amsterdam-based cryptocurrency trader Michaël van de Poppe said the correction in markets was bad. “But one thing I know for sure, investing into [Bitcoin] in terms of [Return on Investment or ROI] is increasing heavily the more it dips,” he added on Twitter.
The markets are correcting and that’s bad.
The markets aren’t going up in one-go.
But one thing I know for sure, investing into #Bitcoin in terms of ROI is increasing heavily the more it dips.
It grants you a massive opportunity.
— Michaël van de Poppe (@CryptoMichNL) April 11, 2022
Bitcoin hodlers, investors who buy and hold irrespective of price, are acumulating at discount and are buying their coins from short-term holders who are panicking, said Glassnode co-founders Jan & Yann.
#BTC supply and demand dynamics
HODLers accumulate at a discount, buying off panicking short-term holders. pic.twitter.com/VHMGt5Mez2
— Negentropic (@Negentropic_) April 11, 2022
On the Ethereum side, there’s a lot of bearishness, according to market data platform Santiment. This is taking place amid falling market caps after a price resurgence in March.
Ethereum has seen a ton of “[Fear, Uncertainty, and Doubt or FUD] even prior to its price rally, and #buythedip opportunities may arise,” tweeted Santiment.
There is a whole lot of #bearishness circulating in #crypto circles as market caps continue to drop following the incredible March. #Ethereum, in particular, has seen a ton of #FUD even prior to its price rally, and #buythedip opportunities may arise. https://t.co/9qQHZoFCVY pic.twitter.com/nJ2SnSunW2
— Santiment (@santimentfeed) April 11, 2022
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