Bitcoin and Ethereum traded above key psychological levels on Sunday evening as the global cryptocurrency market cap rose 3.8% to $1.3 trillion at press time.
|Cryptocurrency||24-Hour % Change (+/-)||Price|
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Why It Matters: Risk assets were seen trading in positive territory at press time as both U.S. stock futures and cryptocurrencies saw gains. S&P 500 and Nasdaq futures rose 0.2% and 0.5%, respectively.
The uptrend in stocks could be supported this week by several retail names, which are set to report earnings.
Investor sentiment remained a bit down, as Alternative.me’s “Fear & Greed Index” flashed “Extreme Fear” at press time. The market mood remains unchanged from last week.
Justin Bennett, a cryptocurrency analyst, said that people trying to short cryptocurrencies are about to get a “hard lesson” on why they have to pay attention to stocks. “It’s no longer optional.”
Did a little shopping this morning.
Pretty sure those trying to short crypto here are about to get a hard lesson in why you have to pay attention to stocks. It’s no longer optional.
And also why you don’t short into macro support.
— Justin Bennett @JustinBennettFX) May 14, 2022
Bennett also said the S&P500 and the Invesco QQQ Trust Series 1 QQQ, an exchange-traded fund that tracks the Nasdaq 100 index, have reclaimed key levels on a weekly time frame, the “most telling sign” yet that cryptocurrency is about to “rally hard’ in the coming week.
The S&P 500 and $QQQ reclaimed these levels on the weekly time frame.
— Justin Bennett (@JustinBennettFX) May 14, 2022
Cryptocurrency trader Michaël van de Poppe expects Bitcoin to test $32,800 levels in the coming week. He tweeted a “higher low” has been created on the chart of the apex coin.
Good part, higher low has been created on #Bitcoin.
Choppy movements around CME during the weekend, but think we’ll see a test at $32.8K in the coming week. pic.twitter.com/FPhlfuVrnL
— Michaël van de Poppe (@CryptoMichNL) May 15, 2022
Chartist Ali Martinez pointed out on Twitter that there are 84,500 BTC long positions on the Bitfinex exchange.
“Either everyone is a genius, or a lot of people are going to get #rekt,” said Martinez.
Either everyone is a genius, or a lot of people are going to get #rekt.
What do you think? pic.twitter.com/vwoZ9RST5j
— Ali Martinez (@ali_charts) May 15, 2022
Glassnode co-founders Yann & Jan touched on the correlation between the ongoing selloff in bonds to risk-on assets as the U.S. Federal Reserve turned hawkish.
Figure Ilustrating Correlation Between Bond Sell-Off And Risk-On Assets — Courtesy Glassnode Uncharted
The analysts said we are entering a regime similar to 1968-1975 when an increasing U.S. 10-year maturity, buoyed by high inflation, exerted downward pressure on the S&P 500.
“We believe that the Fed will continue adding pressure to the U.S .10-year maturity yield and the S&P 500, despite the fact that the prices of durable goods and used cars gradually decreased,” said Yann & Jann, in a blog post seen by Benzinga.
The yield on the 10-year Treasury notes rose 11.8 basis poing to 2.935% on Friday, according to a report from Reuters.