Why It Matters: Price action surrounding major cryptocurrencies remains rangebound. On Thursday, cryptocurrencies moved higher alongside stocks, which staged a sharp recovery.
The S&P 500 and Nasdaq rose 1.8% and 2.7%, respectively, on Thursday. At press time, S&P 500 and Nasdaq futures were seen trading higher by 0.1% each.
In the currency markets, investors appear to be whetting their risk appetite as currencies like the Australian and New Zealand dollars rose against the greenback. The dollar index, the measure of the U.S. unit’s strength against six of its peers, retreated 0.4% to 102.11, according to a Reuters report.
Current Bitcoin trading is about as exciting as watching paint dry, said OANDA Senior Market Analyst Edward Moya.
“Bitcoin remains rangebound and hovers around the $30,000 level. Risk appetite is staging a rally and that has helped send Bitcoin slightly higher on the day.”
Moya said it will take several more weeks before the bearish sentiment on Wall Street improves and that’s when the apex coin will get its “groove” back.
“If Bitcoin can recapture the $33,500 level, that is what is needed for technical buying to get triggered,” wrote Moya in a note, seen by Benzinga.
Cryptocurrency trader Michaël van de Poppe tweeted $29,962.17 as the crucial level for Bitcoin to hold if it wants to move higher.
Nearly 1% of Ethereum supply or nearly $2.21 billion has moved back to exchanges over the past weeks, said Santiment in a tweet. The supply dates back to August 2020. The movement to exchanges is the most sustained since May 2021, according to the market intelligence platform.
The movement of a cryptocurrency into exchanges from storage is usually a signal that investors are looking to sell as it incurs costs. An increase in available trading volume could be construed as a harbinger of volatility.