Major coins remained buoyant Monday night as the global market cryptocurrency market cap increased 0.5% to $989.5 billion as of 7:48 p.m. EST.
|Piece of money||24 hours||7 days||Price|
|Cryptocurrency||% change over 24 hours (+/-)||Price|
|Frax Sharing (FXS)||+6.9%||$8.93|
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Why is this important: Bitcoin and Ethereum were higher on Monday as the New Year rally remained intact. However, momentum has been subdued for other risky assets like equities as investors anticipate corporate earnings season.
“There is certainly a growing sense of optimism about 2023 as we navigate the first month of the year. Economic data has been kind to say the least, which we haven’t been afforded for the vast majority of the past year,” said Craig Erlamsenior market analyst at OANDA.
“A rise in risk appetite sparked a surge in bitcoin which spent the last few weeks of last year languishing between $16,000 and $17,000. It is up more than 25% since the start of the year, moving back above $20,000 this morning in the process,” the analyst said in a note seen by Benzinga.
Erlam said it’s not entirely clear whether this is a sign of a dip or a brief rally, but there are “clearly still some very bullish traders.”
Michael van de Poppe said Bitcoin was trying to “break through resistance” and may be “looking for a sweep” from the $21,600 level. He said eyes will be on the dollar index, which tracks the greenback against six other currencies, in the coming days. At the time of this writing, the dollar index was at 102.30.
glass knot said Bitcoin saw “larger volumes of on-chain profits than losses” for the first time since June.
Separately, the on-chain analytics firm said a “compelling break” above 1.0 for realized profit-to-loss ratio, or aSOPR metrics has “historically [signaled] a cyclical regime change is underway.
“A successful retest and rebound of aSOPR from 1.0 is often seen near turning points in the cycle,” Glassnode said.
aSOPR or Adjusted Exit Profit Ratio is a metric that tracks the ratio of exits spent to earnings over a period of time.
Saniment said cryptocurrency traders are behaving as if seeing a top and taking advantage of “the opportunity to take profits while having the opportunity.”
The market information platform said that Bitcoin had the highest take-profit ratio since February 2021, while in the case of Ethereum it had been since October 2021.