9/28/2022 | Benzinga Crypto

Bitcoin, Ethereum, Dogecoin Rise: Analyst Sees Crypto Bounce 'Lasting A Little Longer'

Bitcoin, Ethereum, Dogecoin Rise: Analyst Sees Crypto Bounce 'Lasting A Little Longer'

ZINGER KEY POINTS
- As Bank of England starts QE amid raising rates, cryptos seen as a solution to the mess by GlobalBlock analyst.
- Dollar Index confirms 'bearish deviation' — a positive for cryptocurrency says key trader.
- Ethereum whales have gotten fatter over the last four years, according to Santiment.

Major coins traded higher Wednesday evening as the global cryptocurrency market cap rose 0.9% to $941.55 billion at 8:11 p.m. EDT.

Why It Matters: Bitcoin and Ethereum were seen trading higher after stocks rose on Wednesday. The S&P 500 and Nasdaq closed 2% and 2.05% higher, respectively. U.S. stock futures inched lower and were largely flat at the time of writing.

On Wednesday, The Bank of England said it will begin purchasing long-dated bonds to stabilize U.K. gilt yields.

GlobalBlock analyst Marcus Sotiriou said in a note, seen by Benzinga, that the U.K. central bank is “not helping themselves” by restarting quantitative easing while raising interest rates at the same time.

“There is clearly a lack of confidence in the Bank of England and UK Treasury currently, as the market has demonstrated with volatile currency moves,” said the analyst for the digital asset broker.

“This raises the notion that cryptocurrencies can provide a solution to this mess, a way out of depending on a small selection of individuals to provide economic stability.”

OANDA senior market analyst Edward Moya said, "Bitcoin is higher but still below the $20,000 level as investors quickly pile back into risky assets.”

“If the stock market rally is able to overcome hard landing fears, that should provide a nice backdrop for cryptos. This broad risk-on rally doesn’t seem like it has legs to stand on, but this bounce could last a little longer,” said the analyst.

Meanwhile, the U.S. dollar index rose to 114.68 on Wednesday — a two-decade high. The index is the measure of the greenback’s strength against a basket of currencies.

Cryptocurrency trader Justin Bennett said that the dollar index confirmed a “bearish deviation” on a 10-month level on Wednesday. He said this is bullish for both stocks and cryptocurrencies.

Michaël van de Poppe said he would like to see Bitcoin see $19,300 hold as support. The cryptocurrency trader said if that was the case the apex coin can test the $20,700 and $22,500 marks.

On the Ethereum side, whales have gotten fatter over time. The top 10-non-exchange and top 10-exchange addresses now collectively hold nearly 32 million ETH — double of what was held four years ago.

“The top 10 non-exchange addresses now hold 23.3M $ETH, compared to top 10 exchange addresses holding 8.6M,” said market intelligence platform Santiment on Twitter.