Bitcoin traded above the psychologically important $40,000 mark even as the apex coin and other major peers were in the red for 24 hours heading into Thursday evening. Global cryptocurrency market capitalization fell 2.6% to $1.9 trillion.
|Piece of money||24 hours||7 days||Price|
|Cryptocurrency||% change over 24 hours (+/-)||Price|
|Kyber Crystal Network v2 (KNC)||+8.2%||$4.75|
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Why is this important: Bitcoin hit an intraday high of $42,893.58 but was unable to sustain its upward momentum, trading 5.7% below those levels at press time. Ethereum was below $3,000.
Risk assets in general traded lower on Thursday, with the S&P 500 and Nasdaq losing 1.5% and 2.1% respectively.
“Nasdaq had a rockier week than bitcoin managed to shrug off; perhaps a sign that he is distancing himself from the link between the performance of the two,” the OANDA analyst said. Craig Erlamin a note.
“We’ll see if that can support that because there’s one thing the two still have in common, they’re considered risky assets, although bitcoin is very premium.”
Thursday, the United States Federal Reserve Chair Jerome Powell said it was “absolutely essential” to restore price stability, according to CNBC report.
“We’re really going to be increasing rates and quickly getting to more neutral and then tighter levels…if it’s appropriate once we get there,” Powell said.
Powell’s statements could imply that the US central bank could opt for a more aggressive rate hike of 50 basis points instead of a 25 basis point increase.
Regardless of headwinds such as rising interest rates and the ongoing war in Eastern Europe, money is flowing into cryptocurrencies. This paves the way for a “strong recovery”, according to the co-founders of Glassnode Jan & Yann.
“17 billion dollars of venture capital [Cryptos] investments and +1,000 transactions in 2022. This year saw the highest median transaction size at $4.5 million,” the co-founders of Glassnode tweeted.
On the Ethereum side, cryptocurrency address activity surged this week, according to Saniment. The financial markets data platform noted that Wednesday’s 592,000 addresses were “the highest number of unique interactions in more than a month.”
$17 billion in venture capital #Crypto investments and +1k deals in 2022. This year saw the highest median deal size at $4.5m.
— Negentropic_ (@Negentropic_) April 21, 2022
Social discussions around the second-largest cryptocurrency have reached their highest level in two months, Santiment tweeted.
#EthereumAddress activity really accelerated this week, with Wednesday’s 592,000 addresses representing the highest number of unique interactions in more than a month. Meanwhile, the social discussion for $ETH reached its highest levels in more than two months. https://t.co/4xsQLD8VaN pic.twitter.com/2pwlN1lXUa
— Santiment (@santimentfeed) April 22, 2022
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