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Bitcoin, Ethereum, Dogecoin Drop As Risk Aversion Returns: Analyst Says This Apex Crypto Level Crucial Or Buyers ‘Not Stepping In’

Major coins were in the red on Thursday evening as risk aversion made a comeback on the market. The global cryptocurrency market cap dropped 2.6% to $844.85 billion at 7:33 p.m. EST.

Price Performance Of Major Coins
Coin 24-hour 7-day Price
Bitcoin (CRYPTO: BTC) -2.6% 0.9% $17,377.08
Ethereum (CRYPTO: ETH) -3.1% -0.7% $1,269.15
Dogecoin (CRYPTO: DOGE) -4% -13.2% $0.085
Top 24-Hour Gainers (Data via CoinMarketCap)
Cryptocurrency 24-Hour % Change (+/-) Price
Chiliz (CHZ) +3.7% $0.14
Celo (CELO) +3.2% $0.60
Bitcoin SV (TRX) +3.2% ​​$46.83

See Also: 2022 Robinhood Review — Stocks and Crypto For Beginners 

Why It Matters: Risk assets, including Bitcoin and Ethereum, were seen under pressure. The Dow Jones Industrial Average fell over 760 points on Thursday. The S&P 500 and Nasdaq were down 2.5% and 3.2% respectively intraday. 

Investors will be on the lookout for cues from Federal Reserve speakers John Williams, Michelle Bowman, and Mary Daly in the coming days to gauge the hawkishness of the central bank.

On Wednesday, the U.S. Federal Reserve announced a 50-basis point hike in rates. Chair Jerome Powell said, “We may have to raise rates higher to get where we want to go.”

On Thursday, The European Central Bank and The Bank of England followed by raising interest rates by 50 bps each.

“Bitcoin is softening as risk aversion hits Wall Street after major central banks signal that more work needs to be done to combat inflation. Bitcoin’s weakness is somewhat limited and won’t draw much attention unless price action dips below the $16,800 level,” said Edward Moya, a senior market analyst with OANDA.

Michaël van de Poppe told his followers on Twitter that they should see if Bitcoin can hold the $17,100 to $17,300 level. “Otherwise buyers are not stepping in and potentially more trouble is going to come,” said the cryptocurrency trader.

Ethereum appears to be in a “bearish fakeout” above the $1,300 mark, according to trader Justin Bennett. At the time of writing the second-largest coin was below that level at $1,270.84.

Meanwhile, several altcoins are still seeing bit “upticks” in address activity, according to Santiment. The market intelligence platform said that dormant wallets are awakening to move their funds right now. 

Santiment pointed to increased network activity in Yearn.Finance (YFI) and Uniswap (UNI) as such examples.

Read Next: Bitcoin, Dogecoin Or Litecoin: Who Will Reign Supreme In Battle For Speed, Cost-Effective Payments?

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