Major coins remained under pressure in the aftermath of the release of minutes from the U.S. Federal Reserve’s July policy meeting as the global cryptocurrency market cap fell 1.3% to $1.1 trillion.
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Why It Matters: The apex coin was in the red at press time, while other risk assets such as stocks traded flat.
“Bitcoin is officially on vacation. Despite decent moves with the dollar and Treasury yields, Bitcoin remains anchored between $20,000 and $25,000,” said Edward Moya, senior market analyst for OANDA in a note seen by Benzinga.
“it seems a major move might have to wait until we have a firm handle with market expectations for the September FOMC meeting. If stocks continue to trade rangebound, it seems Bitcoin could do the same for the lead up to the Jackson Hole Symposium,” said Moya.
The Jackson Hole event is hosted by the Federal Reserve and is slated for Aug. 25 this year.
The dollar exhibited strength on Thursday. The dollar index, a measure of the greenback’s strength against six other currencies, rose to 107.57, the highest in a month, reported Reuters.
The dollar surged after the Federal Reserve officials touched on the need for further rate hikes to combat inflation, according to the recently released policy minutes for July.
Justin Bennett said on Twitter that the dollar index could likely rise to 120 over the next few months. “USD up means risk assets down,” the cryptocurrency trader said.
The trend is your friend…unless it's the $DXY.
112-113 first, but most likely 120 in the next few months.
USD up means risk assets down.#stocks #crypto $BTC $ETH pic.twitter.com/iRAK1di25C
Michaël van de Poppe tweeted Thursday that Bitcoin is “climbing upwards.” The trader said he expected the apex coin to advance to $28,000 to $30,000 levels in the next weeks.
#Bitcoin climbing upwards.
� Lows have been taken in the past 24 hours.
� Crucial to break $23.7K back.
� If a move to $24K occurs, a flip of $23.7K is trigger for longs.
The trend remains upwards on higher timeframes.
Still expecting $28-30K in the next weeks. pic.twitter.com/wXjeu1bZ1K
Bitcoin’s relative transfer volume, which is the entity-adjusted on-chain volume breakdown by dollar value of transactions, indicates that 63% of all on-chain volume is more than $10 million in size. On-chain analytics firm Glassnode tweeted that this “dynamic has continued to develop since mid-2020.”
#Bitcoin Relative Transfer Volume is dominated by large size transfers, with 63% of all on-chain volume being $10M+ in size.
This dynamic has continued to develop since mid-2020.https://t.co/6Vwhd1hSgb pic.twitter.com/3atfwOlI6S
There is a rise in Bitcoin profit taking, while Ethereum’s profit vs. loss ratio is down after showing heavy profit taking earlier in the month, tweeted market intelligence platform Santiment.
#Bitcoin is staying relatively flat at $23.4k, but its profit vs. loss transaction ratio is creeping up to 'yellow flag' levels. Meanwhile, #Ethereum is finally outputting a much safer ratio this week after some very heavy profit taking in early August. https://t.co/CB79m9dkbE pic.twitter.com/RXfXTdkfuu
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