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Bitcoin, Ethereum, Dogecoin Slump Again — Will ‘Supply Shock’ Drive The Next Crypto Rally? – Bitcoin (BTC/USD)

Major coins were subdued over the weekend and traded in the red on Sunday, with the global cryptocurrency market cap falling 2.3% to $1.7 trillion.

Price Performance Of Major Coins

coin 24 hour 7 days Price
Bitcoin BTC/USD -2% -0.8% $38,123.69
Ethereum ETH/USD -1.5% -0.4% $2,534.38
Dogecoin DOGE/USD -3.05% -7.1% $0.11

Top 24-Hour Gainers (Data via CoinMarketCap)

Cryptocurrency 24-Hour % Change (+/-) Price
The Graph (GRT) +3.5% $0.33
THORChain (THOR) +2.9% $6.57
Zcash (ZEC) +2.6% $154.74

See Also: How To Buy Bitcoin (BTC)

Why It Matters: International Monetary Fund Managing Director Kristalina Georgieva said on Saturday that Russia may default on its debts due to global sanctions, adding that a default would not trigger a financial crisis around the world for now, according to a Reuters report.

Meanwhile, Ukraine is calling for direct talks between President Volodymyr Zelenskiy and his Russian counterpart Vladimir Putin. On Friday, Putin said there had been some “positive shifts” in talks between the two countries. The next round of talks between Russia and Ukraine is due Monday, as per a separate Reuters report.

Equities traded higher at press time compared with cryptocurrencies. S&P 500 futures and Nasdaq futures were both up 0.7% at 4,220.25 and 13,383.25, respectively, at press time. Oil and gold futures were lower.

Over the weekend, a comparison of top assets by market cap indicates that Bitcoin, Ripple other BinanceCoin are showing signs of “traders expecting price rises.”

Trader sentiment is negative on polka dotsas per a tweet from sanctuarya financial market data and content platform.

A comparison of #crypto’s top assets by market cap reveals #Bitcoin, #XRPNetwork, and #BinanceCoin are showing signs of traders expecting price rises. Meanwhile, #Polkadot is one of the few top caps where trader sentiment is more negative than usual.

— Santiment (@santimentfeed) March 13, 2022

Illiquid Supply Shock Ratio, a metric developed by the analyst Will Clemente, has risen higher recently, as per on-chain analysis firm Glassnode. Illiquid Bitcoin supply refers to coins in wallets with little history of spending. This supply is now 3.2 times larger than Liquid and Highly Liquid supply combined.

The #Bitcoin Illiquid Supply Shock Ratio, first developed by @WClementeIII, has ticked significantly higher this week.

Illiquid $BTC supply represents coins held in wallets with little to no history of spending. It is now 3.2x larger than Liquid and Highly Liquid supply combined

— glassnode (@glassnode) March 13, 2022

Glass node founders Jan & Yann tweeted that the increasing illiquid Bitcoin supply coupled with decreasing liquid supply means there are “fewer coins available to meet demand.”

Increasing illiquid #Bitcoin supply + decreasing liquid supply = fewer coins available to meet demand.

We expand on the likelihood of an upcoming supply shock here

— Negentropic (@Negentropic_) March 13, 2022

Read Next: Why ‘Rich Dad, Poor Dad’ Author Is Calling Janet Yellen The ‘Queen Of Bitcoin’

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