Bitcoin, Ethereum and Dogecoin Unfazed by Upcoming Rate Hike: Why This Analyst Expects a 'Big Short Squeeze'
Major coins, including Bitcoin, traded in the green at press time on Thursday, as global cryptocurrency market cap rose 2.8% to reach $925.2 billion.
See also: How to get free crypto
Why it matters: Risky assets, including cryptocurrencies, were buoyant Thursday night as expectations of a 100 basis point interest rate hike tightened.
United States Federal Reserve Governor Christopher Waller said a 75 basis point hike would almost certainly occur on Thursday. Waller said the market was getting ahead of itself when he forecast a 100 basis point increase in interest rates.
Despite recent macro headwinds, Bitcoin has held the $20,000 mark, said Craig Erlam, senior market analyst at OANDA.
“If [Bitcoin] can continue to swim against the tide, I'm not so sure. What we see is impressive, but I find it hard to understand that bitcoin has bottomed out. Time will tell,” Erlam said, in a note seen by Benzinga.
The dollar continues to appreciate despite anticipated rate hikes. The dollar index, a measure of the strength of US unity against six other currencies, rose 0.2% to 108.50 on Thursday. It touched a high of 109.29, the highest level since September 2002 intraday, Reuters reported.
Cryptocurrency trader Justin Bennett told his Twitter followers to keep an eye on the dollar index on Friday and said he should "get weaker to help fueling a new relief rally for "cryptocurrencies.
Cryptocurrencies thrive when there is little correlation to stocks, Santiment said Thursday. "After yesterday's [inflation] report, [BTC] & [alts] rallied while [SP500 & Gold] declines. If they're not correlated, that's a good sign of a potential breakout,” the trading news platform said in a tweet.
S&P 500 and Nasdaq futures were each trading up 0.2% at press time, while Bitcoin was above the key psychological level of 20,000 $.
See also: Are bitcoin and ethereum poised to lead the market stock market going up?< /em>
CryptoQuant CEO Ki Young Ju said he was expecting a "big short squeeze". Ki pointed out that in 2020 many people went short in Bitcoin and were liquidated between $10,000 and $20,000 before the "parabolic bull run" started.
“At the time, 10% of hourly buy orders came from short liquidations. Now it's around 1%," said the CEO of the community analytics platform.
Major coins, including Bitcoin, traded in the green at press time on Thursday, as global cryptocurrency market cap rose 2.8% to reach $925.2 billion.
See also: How to get free crypto
Why it matters: Risky assets, including cryptocurrencies, were buoyant Thursday night as expectations of a 100 basis point interest rate hike tightened.
United States Federal Reserve Governor Christopher Waller said a 75 basis point hike would almost certainly occur on Thursday. Waller said the market was getting ahead of itself when he forecast a 100 basis point increase in interest rates.
Despite recent macro headwinds, Bitcoin has held the $20,000 mark, said Craig Erlam, senior market analyst at OANDA.
“If [Bitcoin] can continue to swim against the tide, I'm not so sure. What we see is impressive, but I find it hard to understand that bitcoin has bottomed out. Time will tell,” Erlam said, in a note seen by Benzinga.
The dollar continues to appreciate despite anticipated rate hikes. The dollar index, a measure of the strength of US unity against six other currencies, rose 0.2% to 108.50 on Thursday. It touched a high of 109.29, the highest level since September 2002 intraday, Reuters reported.
Cryptocurrency trader Justin Bennett told his Twitter followers to keep an eye on the dollar index on Friday and said he should "get weaker to help fueling a new relief rally for "cryptocurrencies.
Cryptocurrencies thrive when there is little correlation to stocks, Santiment said Thursday. "After yesterday's [inflation] report, [BTC] & [alts] rallied while [SP500 & Gold] declines. If they're not correlated, that's a good sign of a potential breakout,” the trading news platform said in a tweet.
S&P 500 and Nasdaq futures were each trading up 0.2% at press time, while Bitcoin was above the key psychological level of 20,000 $.
See also: Are bitcoin and ethereum poised to lead the market stock market going up?< /em>
CryptoQuant CEO Ki Young Ju said he was expecting a "big short squeeze". Ki pointed out that in 2020 many people went short in Bitcoin and were liquidated between $10,000 and $20,000 before the "parabolic bull run" started.
“At the time, 10% of hourly buy orders came from short liquidations. Now it's around 1%," said the CEO of the community analytics platform.
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