$Bitcoin(BTC.CC)$ and $Ethereum(ETH.CC)$ were trading in the green at press time as the global cryptocurrency market cap rose 2.9% to $1.9 trillion on Monday evening.
| Coin | 24-hour | 7-day | Price |
|---|---|---|---|
| Bitcoin (CRYPTO: BTC) | 3% | 3.45% | $40,956.93 |
| Ethereum (CRYPTO: ETH) | 2.8% | 3.2% | $3,077.28 |
| Dogecoin (CRYPTO: DOGE) | 0.6% | 4.4% | $0.14 |
| Cryptocurrency | 24-Hour % Change (+/-) | Price |
|---|---|---|
| STEPN (FTT) | +33.9% | $3.25 |
| Terra (LUNA) | +18% | $91.33 |
| Zcash (ZEC) | +13.7% | $156.43 |
Why It Matters: Bitcoin and Ethereum trading volumes rose on Monday. The 24-hour trading of both coins shot up by nearly 75% to $33.89 billion and $18.76 billion, respectively, according to CoinMarketCap data.
Among other risk assets, the S&P 500 and Nasdaq futures rose 0.5% and 0.7%, respectively, at press time as the market gears up for a busy earnings week.
The dollar exhibited strength against both the yen and the euro. The dollar index, a measure of the greenback's strength against six other currencies, rose to a two-year high of 100.86, according to a Reuters report.
The strength of the dollar is a headwind against the cryptocurrency market, according to Delphi Digital.
As BTC struggles to keep its head above $40K, the US Dollar Index (DXY) just broke 100 for the first time in almost two years."
- said the independent research firm.
The greenback is now on the verge of a multi-decade breakout as two of its major currency pairs (EUR and JPY) are both vulnerable to technical breakdowns of their own. The EUR and JPY make up ~70% of the DXY Index."
Another factor working against the apex coin is liquidity, according to Delphi Digital. Pointing to the difference between the expected price of a trade and the price at which it is executed, or slippage, Delphi Digital said over the last weeks it has observed the average size of a BTC order incurring 10 bps of slippage.
This could be a warning sign for spot market liquidity should this trend persist."
- said Delphi Digital.
Market intelligence platform, Santiment, said that Bitcoin's MVRV (Market Value to Realized Value) indicates that prices are in the semi-bullish territory.
Santiment said in a tweet, "Average traders who have invested in $BTC are currently down -10.4%. This metric fluctuates at 0%, so there is less risk in buying while traders are well in the red here."
