The dominance of the largest cryptocurrency by market capitalization dipped to 42%, far off its October high.
Good morning. Here’s what’s happening this morning:
Market moves: Bitcoin edged toward $58,000 as altcoins and other layer 1 tokens recovered from seven-day lows.
Technician’s take: Momentum is improving as oversold readings appear on the chart.
Prices
Bitcoin (BTC): $57,550 +1.82%
Ether (ETH): $4,346 +5.93%
Market moves
Bitcoin struggled to move above $58,000 during U.S. trading hours on Tuesday, while alternative cryptocurrencies (altcoins), including ether and other layer 1 tokens recovered to above their seven-day lows.
As a result, the bitcoin dominance chart, which shows the extent of the crypto’s dominance over the rest of the market, continued to signal a bias toward altcoin exposure, according to TradingView, down to roughly 42.31% from October’s high at 47.41%.
Lucas Outumuro, head of research at blockchain analytics firm IntoTheBlock, noted a stronger correlation between the stock market and ether than between stocks and bitcoin.
30-day correlation coefficient between bitcoin/ether and traditional assets (IntoTheBlock)
“Bitcoin is struggling to consolidate as an inflation hedge but is also not following risk assets, which may be leaving some investors uncertain,” Outumuro said. “Ether has been more closely correlated to stocks, which suggests investors [are] treating it more like a risk-on trade.”
On the traditional markets, technology stocks moved the S&P 500 lowered on Tuesday, which could have a negative impact on the crypto market on Wednesday.
Technician’s take
Important events
8:30 a.m. (HKT/SGT (8:30 a.m.): Japan Manufacturing PMI (purchasing managers index)
8:40 a.m. HKT/SGT (12:40 a.m.): Speech by Michele Bullock, the Assistant Governor (Financial System) at the Reserve Bank of Australia
