Bitcoin and Ethereum prices plunged Sunday evening as the global cryptocurrency market dropped sharply lower by 5.9% to $1.1 trillion at press time.
|Cryptocurrency||24-Hour % Change (+/-)||Price|
|FTX Token (FTT)||+1.3%||$27.90|
|UNUS SED LEO (LEO)||+0.3%||$5.51|
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Why It Matters: Bitcoin, Ethereum and other large cryptocurrencies crashed over the weekend after a hotter-than-expected inflation report on Friday.
May’s Consumer Price Index rose 1% from the prior month on a seasonally adjusted basis versus a consensus estimate of 0.7%. It rose 8.6% before adjustment over the last 12 months, above an estimated 8.2%, the sharpest rise since December 1981.
On Friday, Edward Moya, a senior market analyst at OANDA, had predicted the bloodbath as appetite for risk assets evaporated.
“A Bitcoin weekend collapse could see prices plunge towards the $25,500 area, with $22,500 being the most extreme scenario. Weekend crypto crashes sometimes are followed by a quick recovery, but the current environment and soft interest might make for a slow recovery.”
Bitcoin’s relative strength index stood at 33.29, while Ethereum’s was at 26.38 at press time, according to Trading View data. An RSI below 30 indicates “oversold” conditions.
Cryptocurrency trader Michaël van de Poppe pointed out that RSI for BTC and ETH are significantly lower than in December 2018, but even so the majority want to short.
Yet, the majority want to short.
— Michaël van de Poppe (@CryptoMichNL) June 12, 2022
In mid-December 2018, Bitcoin traded around the $3,300 level, while Ethereum was priced around $85.
Glassnode co-founders Jan & Yann noted on Friday that the Bitcoin google queries were above the 2019-2020 bear market levels despite fears of an upcoming recession.
The number of #Bitcoin google queries is above 2019-2020 bear market levels despite the ongoing fear of a recession.
— Negentropic (@Negentropic_) June 10, 2022
Heading into a fresh trading week, investor sentiment remains fearful. At press time, Alternative.me’s “Fear & Greed Index” flashed “Extreme Fear” as it did last week.