Cryptocurrency market continues to fluctuate on Thursday, with Bitcoin reclaiming support at $62,000 after midday. Most altcoins have seen an increase, with meme coins related to the US election leading the gains.
According to data from Bityard, Bitcoin rebounded from a daily low of $60,623 in the early morning, rising 3.4% to reach a daily high of $62,663 before settling at support around $62,500. At the time of writing, BTC’s trading price is $62,395, with a 24-hour increase of 1.15%.
In the altcoin market, there have been mixed movements, with a slight majority of the top 200 tokens by market cap recording gains. Akash Network (AKT), Livepeer (LPT), and Arweave (AR) have seen increases of 17.4%, 15.3%, and 11.9% respectively. Render (RNDR) and Toncoin (TON) have both risen by 11%. FTX Token (FTT) has experienced the largest decline, falling by 7%, while Tellor (TRB) and GuildFi (GF) have dropped by 5.4% and 4.2% respectively.
Secure Digital Markets analysts state that Bitcoin has rebounded from recent lows and is preparing to challenge the previous peak of $65,000. The overall trading volume, including spot and derivative markets, has decreased by 44% to $6.58 trillion, marking the first decline in seven months. This decline is attributed to increased geopolitical tensions and reduced investment in US-listed spot ETFs, casting a shadow over the cryptocurrency market.
The US labor market continues to cool down, with the latest jobless claims rising by 22,000 to 231,000, reaching the highest level since August. This has pushed the US stock market higher, with many seeing it as a positive signal that there may be one or more interest rate cuts in 2024, despite several Federal Reserve officials recently reiterating the possibility of keeping rates at a higher level for a longer period to combat inflation.
However, Bert Dohmen from Dohmen Capital Research believes that the significant increase in M2 money supply recently means that the Federal Reserve will not be able to achieve the expected interest rate cuts this year, and investors should prepare for this possibility. He states that the Federal Reserve is “caught in a catch-22 situation” as they are forced to finance record-breaking budget deficits while continuing to fight stubborn high inflation. He also adds, “The Federal Reserve is forced to step on the gas pedal to finance record-breaking deficits for the US Treasury. They know it will cause inflation, but they have no choice.”
At the close of the market, the S&P, Dow Jones, and Nasdaq indexes have all risen by 0.51%, 0.85%, and 0.27% respectively. As the market improves, the US dollar index has dropped by 0.5% from its daily high to 105.218, while the US 10-year Treasury yield has decreased by 142 basis points to 4.457%.
Meme coin MAGA rebounds strongly as former US Republican presidential candidate Donald Trump comments on cryptocurrency. On May 9th, the Trump-themed meme coin MAGA (TRUMP) surged by 78%, with its 24-hour trading volume jumping by 620% to $281.8 million. MAGA’s market capitalization is $281.8 million, ranking 248th on CoinGecko. At the time of writing, it is the 13th largest meme coin by market capitalization.
Trump’s presidential campaign team currently does not accept cryptocurrency donations, but he expressed openness to it during a spontaneous Q&A session at a dinner. When asked, “Can we donate using cryptocurrency?” he replied, “If you can’t (donate with cryptocurrency), I’ll make sure you can.”
According to TradingView data, MAGA’s trading price is $6, showing a 46% increase in the past 24 hours. Other tokens related to US politics have also seen increases on May 9th, with Donal Tremp (TREMP) leading the way with a triple-digit increase of 136% in the past 24 hours. Independence Token (RFKJ), a token dedicated to supporting presidential candidate Robert F. Kennedy, has risen by 24.4%.
Meme coins have seen significant growth in 2024, becoming the highest returning narrative in the first quarter. According to anonymous Crypto Koryo user, CoinMarketCap listed a record-breaking 138 erc-20 meme coins in April 2024, a 666% increase from the 18 listed in April 2023.
Analysts suggest that the number of memecoin erc-20 tokens will experience exponential growth in 2024. Last month, 138 new memecoins were registered on CoinMarketCap, compared to 18 in April 2023. Currently, there are over 2,230 memecoins listed on CoinMarketCap, with a total market capitalization of over $52.325 billion, representing 2.15% of the global cryptocurrency market capitalization.
The current overall cryptocurrency market capitalization is $2.31 trillion, with Bitcoin’s dominance rate at 53.3%.
Market analyst Rekt Capital suggests that the next upward trend may have already begun, as long-term downtrends that end with corrections of over -20% often indicate future price reversals. He adds that Bitcoin is still using the range low as support after last week’s downward candle, indicating that the bottom may have arrived.
Twitter influencer il Capo Of Crypto also believes that Bitcoin may have formed a solid support base at the current level and may soon start to rise. He writes on Twitter, “After deviation from the range low, price bounces, touches resistance, and is now pulling back to an interesting support area that may form the first higher low.”
The analyst states, “There is strong demand between $59,000 and $61,000, and most indicators are bullish, so a rebound may occur. If BTC breaks through the $65,000 resistance level, I will look for $68,000 to $69,000 as the first target and $74,000 to $75,000 as the second target.”
Author: BitpushNews Mary Liu
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Tags:
2023 market trend
ETF
interest rate hike
unemployment rate
altcoins
Bitcoin
bull market
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inflation
interest rate cut
Disclaimer: All articles by Bitpush represent the author’s views and do not constitute investment advice.
Original article link: https://www.bitpush.news/articles/6694798
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