Bitcoin (BTC) and ether (ETH) remained little changed over the past 24 hours amid tepid price catalysts and fading volumes in both spot and futures markets.
The price of bitcoin appeared set to retake the $27,000 level early Wednesday, but the rally was turned back alongside a renewed slide in the U.S. stock market.
FxPro markets analyst Alex Kuptsikevich told CoinDesk in a daily note that while cryptocurrencies saw increased buying equity markets were under the most pressure as the dollar was gaining momentum. However, this momentum didn't last long, which dampened bullish outlooks.
“These growth impulses promise to remain a bull trap, offering the best opportunity to sell on the upside,” Kuptsikevich said.
The trader added that the crypto sector could need banking problems or uncertainty about the solvency of governments to generate sustainable growth momentum.
“Recent moves in bond markets show that something like this is brewing,” Kuptsikevich explained, stating that bitcoin and other cryptocurrencies “need financial chaos for growth.”
Meanwhile, alternative tokens were some of the only volatile assets in the crypto market as bitcoin cash (BCH) jumped 8% and DeFi protocol Maker’s MKR tokens rose 7%. Growth in MKR could be tied to an increase in wallet balances holding the token on exchanges, indicating demand.
The CoinDesk Market Index (CMI), a broad-based index of hundreds of tokens, rose 0.95% in the past 24 hours.
The U.S. Federal Reserve’s recent comments suggested that interest rates may remain high for some time to come, jolting broader markets in the U.S. as traders priced in inflation fears.
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