Cryptocurrencies were seen spiking on Tuesday evening as the global cryptocurrency market cap rose 2.7% to $970 billion at 8:17 p.m. EDT.
| Coin | 24-hour | 7-day | Price |
|---|---|---|---|
| Bitcoin (CRYPTO: BTC) | 3.2% | 5.9% | $20,286.32 |
| Ethereum (CRYPTO: ETH) | 2.9% | 2.4% | $1,363.23 |
| Dogecoin (CRYPTO: DOGE) | 8.55% | 7.9% | $0.065 |
| Cryptocurrency | 24-Hour % Change (+/-) | Price |
|---|---|---|
| Convex Finance (CVX) | +9.5% | $5.39 |
| Dogecoin (DOGE) | +8.4% | $0.065 |
| Elrond (EGLD) | +6.1% | $55.35 |
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Why It Matters: Cryptocurrencies tracked gains in stocks on Tuesday, as the S&P 500 and Nasdaq closed 3.1% and 3.3% higher, respectively. At the time of writing, U.S. stock futures were marginally in the red.
The return of risk appetite was triggered by PMI numbers released this week, which indicate weakness. Traders speculated that this could prompt central banks to become more dovish.
“If that sounds like straw clutching, it's probably because it is but then, equity markets have had a rough ride of late and that can't last forever,” said Craig Erlam, a senior market analyst with OANDA.
Notably, on Tuesday, the Reserve Bank of Australia hiked interest rates by a smaller-than-expected 25 basis points, pointing to previous substantial hikes, reported Reuters.
“The slight disconnect between Bitcoin and other risk assets recently has been interesting. We've seen more resilience during downturns and seemingly less enthusiasm during rallies,” said Erlam, in a note seen by Benzinga.
“It will be interesting to see whether this relationship holds and what that means going forward.”
Among coins with large market capitalization, Dogecoin saw considerable gains on an intraday basis. The bellwether memecoin rose after Tesla Inc (NASDAQ: TSLA) CEO Elon Musk revived the offer to purchase Twitter for $54.20 per share.
Musk, a DOGE-bull, is said to gravitate towards integrating the memecoin into Twitter should he go on to own the Jack Dorsey-founded social media platform.
Dogecoin whale transactions and funding rates spiked — both harbingers of price direction change, tweeted market intelligence platform Santiment on Tuesday.
#Dogecoin is up a solid +9% in the past day and a half, and the #memecoin is still ranked as the 10th largest market cap asset in #crypto. Whale transactions and funding rates have just spiked, which are two great predictors of price direction change. https://t.co/k3voMpSH3k pic.twitter.com/uGi7Zg8Sig
— Santiment (@santimentfeed) October 4, 2022
Michaël van de Poppe said that it is time for the dollar index, a measure of the greenback’s strength against six of its peers, to see a “slight bounce.”
It's time for a slight bounce on the $DXY and a correction on the crypto markets.
— Michaël van de Poppe (@CryptoMichNL) October 4, 2022
But, more importantly, I'm expecting unemployment data to be bad on Friday and then indices should be continuing.
Relief rally in Q4 is on the horizon for #Bitcoin.
The Amsterdam-based cryptocurrency trader said he’s expecting bad unemployment numbers on Friday and then subsequently expects the indices to continue.
“Relief rally in Q4 is on the horizon for'' Bitcoin, tweeted van de Poppe.
Meanwhile, Bitcoin miners are on the threshold of “acute income stress,” according to the on-chain analysis firm Glassnode, which used the Difficulty Regression Model to arrive at that conclusion.
#Bitcoin has been trading very close to its estimated cost of production price since the June sell-off.
— glassnode (@glassnode) October 3, 2022
The Difficulty Regression Model is hovering at $18,300, and signals a potential threshold for acute income stress in the mining industry.
Read morehttps://t.co/Lv9ObNnyFE pic.twitter.com/jsAmXjtgSH
The Model is an estimate of the all-in-sustaining cost of production for the apex coin. Glassnode tweeted that Bitcoin has been “trading very close to its estimated cost of production price since the June sell-off.”
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