As a result, the total market cap of the cryptocurrency markets was slightly lower on the day at around $860 billion. That’s a pullback of more than 10% from last Friday’s highs. The fact that crypto prices peaked just before strong US jobs data is probably no coincidence.
The June jobs report, released on Friday, was interpreted as bolstering the case for a second consecutive 75 basis point rate hike by the Fed later this month. Fed policymakers have also lobbied their support for a 75 basis point hike in recent weeks. The Fed’s dovish stance since abandoning its “inflation is temporary” view in the fourth quarter of 2021 has been the main reason behind the crypto (and stocks) market’s weakness this year, which is why strong data is boosting the Fed’s tightening bets and crypto as well damage.
Investors are also showing signs of caution ahead of the release of US consumer price inflation (CPI) data on Wednesday and US retail sales data on Friday this week. Traders will recall that a positive inflation surprise in June when the CPI data was released caused risky assets like stocks and crypto to dump.
Bitcoin last changed hands just below $20,000 after previously finding support in the form of an uptrend that connected recent lows. Ethereum, on the other hand, last changed hands around $1,070. A recent break below a short-term uptrend has opened the door for a test of late-June lows near $1,000, technicians say.
According to CoinMarketCap, the native token of the quant blockchain QNT is up about 12.5% over the past 24 hours, making it the top-performing top 50 cryptocurrency (by market cap) by some margin over the period.
However, at the current level of $84.00, QNT/USD remains within the $75-$90 range that has prevailed for the past three days. The pair has so far failed to test weekend highs around $90 on Tuesday.
From this time seven days ago, QNT is up a staggering 50%, according to CoinMarketCap. QNT’s recent rally was sparked in the middle of last week when the cryptocurrency broke a downtrend that had limited its price action since mid-May. Its bounce back above its 21- and 50-day moving averages also helped it capitalize on some technical buying.
As the 21DMA recently crossed back above the 50DMA, more technical buying could be on the cards. However, the negative tone versus broader crypto markets is also something to consider as it remains capped to the upside.
In terms of macro developments, all is going well this week, if crypto can muster a rebound back to recent highs from last Friday this week then QNT looks to be in with a shot at $100 and its 200DMA at $106.00. But it must first make a sustained break above $90.