On Tuesday morning in Asia, the price of bitcoin was unchanged at US$26,300. The price of ether increased somewhat but stayed below US$1,600. The majority of the other top 10 non-stablecoin cryptocurrencies saw losses for the week, even if they made slight gains during the previous 24 hours. The winners were headed by Cardano’s ADA.
Concerns about interest rate hikes and increasing Treasury rates put pressure on cryptocurrencies as well as global markets. After Wall Street ended the day on Monday with a gain, U.S. stock futures were unchanged during the early morning hours in Asia. This increase ended a four-day losing skid brought on by the U.S. Federal Reserve’s hawkish stance.
Short-term Bitcoin investors lose money.
Bitcoin was little changed as of 07:40 a.m. in Hong Kong, trading at US$26,276.60 for a weekly loss of 1.78%, according to CoinMarketCap data. The world’s largest cryptocurrency dropped to US$26,011.47 on Monday evening, the lowest price since Sept. 13.
Ether also remained flat. It edged up 0.35% to US$1,586.87 but is down 3.06% for the past seven days. The token touched a high of US$1,595.84 early Tuesday morning but failed to move above the US$1,600 resistance level.
“Cryptocurrency market sentiment remains weak, amid declines in global stock markets, a strong dollar, and rising yields putting pressure on risk assets,” Hani Abuagla, senior market analyst at online trading broker XTB MENA, wrote in an email.
According to Matteo Greco, a research analyst at the Canadian-based digital asset investing company Fineqia International, “capital has been redirected towards less risky investments such as government bonds as a result of economic policies adopted by central banks, particularly the Federal Reserve.”
Greco said, “These bonds currently offer an appealing risk/reward ratio, offering passive income while reducing portfolio risk.”
According to statistics from blockchain tracker Glassnode, Abuagla of XTB MENA observed that an 11-month high of almost 97.5% of addresses owned by short-term Bitcoin investors are reporting losses. The traders that purchased bitcoin during the previous 155 days are known as short-term holdings (STH).
The prior pattern of on-chain conduct (when the price went below the average STH purchase price of BTC) suggests that there may be increasing pressure to sell BTC at a loss in the STH pool, according to Abuagla.
A decline in Bitcoin prices, according to Abuagla, maybe a “contrary signal” pointing to an oversold market. Long-term investors may have a chance to accumulate as a result, he continued.
The analytics company MicroStrategy, located in the United States and founded by Michael Saylor, disclosed on Monday that it had acquired approximately $150 million worth of Bitcoin between August 1 and September 24 at an average cost of around US$27,053 per coin.
On September 24, MicroStrategy controlled about 158,245 bitcoins, which were bought for a total of about US$4.68 billion.
“While this is encouraging and demonstrates ongoing confidence and significant purchasing pressure, the cryptocurrency markets didn’t really react. Ironically, MicroStrategy’s buying announcements have typically been followed by slight declines rather than gains, and the cryptocurrency market may be leery of purchases, according to Justin d’Anethan, head of Asia-Pacific business development at Belgian crypto market maker Keyrock.
According to d’Anethan, “The entire thing occurs in a context where investors are still processing the Fed’s speech hinting at higher rates for longer and consequently presumed lower valuations for most risky assets.”
The majority of the top 10 non-stablecoins have seen rises during the last day. The top winner was Cardano’s ADA. The token gained 1.10%, reaching US$0.2453, but was down 2.49% for the week.
Only Toncoin, a non-stablecoin in the top 10, suffered a 24-hour loss. With a weekly loss of 10.28%, it fell 1.83% to US$2.16.
On the last day, the overall market capitalization of cryptocurrencies increased 0.28% to US$1.05 trillion, while the trading volume increased 40.50% to US$24.94 billion.