Bitcoin traded below the psychologically important $40,000 level at press time on Thursday evening, with the global cryptocurrency market cap dropping 4.35% to $1.75 trillion.
|Piece of money||24 hours||7 days||Price|
|Bitcoin (CRYPTO: BTC)||-6.1%||-5.6%||$39,300.01|
|Dogecoin (CRYPT: DOGE)||-3.8%||-8.1%||$0.12|
|Cryptocurrency||% change over 24 hours (+/-)||Price|
See also: How to buy bitcoins (BTC)
Why is this important: On Thursday, the US Department of Labor released inflation figures for February. The overall Consumer Price Index or CPI rose 7.9% in the month, above an estimate of 7.8%, the biggest increase since January 1982.
Risk assets fell after the inflation data. The S&P 500 and Nasdaq closed down 0.4% and 0.95% at 4,259.52 and 13,129.96, respectively.
Cryptocurrencies followed stocks and headed lower. However, some analysts believe that the centerpiece could become inflation protection.
“Maybe short term price will drop due to panic, but long term I think #Bitcoin is by far the best bet against inflation,” tweeted Michael van de Poppea cryptocurrency trader.
Maybe the short term price will drop due to the panic, but in the long term I think #Bitcoins is by far the best bet against inflation.
— Michael van de Poppe (@CryptoMichNL) March 10, 2022
The co-founders of on-chain analytics company Glassnode, Jean & Yanntweeted that commodities looked strong and there was a “rotation in value”.
A chart shared by them, outlining the top 10 assets by market capitalization, reveals a 15% drop in Bitcoin’s performance since the start of the year, while gold jumped 14%.
Top 10 Assets by Market Cap Reveal Strong Commodities and Rotation to Value
— Negentropic (@Negentropic_) March 10, 2022
Meanwhile, the put/call ratio for Bitcoin hit a six-month high of 0.69 in February amid a bear market, according to Delphi Digital.
On Thursday, the volume-adjusted put/call ratio hit a monthly low of 0.44 as call volumes rose. Deribit traders were buying April 29 BTC calls for strikes of $42,000, $50,000 and $60,000, Delphi said, boosting the notional value up to $193 million on the exchange.
“This could indicate traders turning bullish, even in an uncertain macro environment.”
BTC Open Interest vs BTC Put/Call Ratio Options for Open Interest and Volume – Courtesy of Glassnode
Ethereum has formed a stronger correlation with the S&P500 index than Bitcoin over the past month. Gold has an “in-place” inverse correlation to the two largest cryptocurrencies by market capitalization, according to financial market data and content platform Santiment.
#Ethereum remains surprisingly close to the price of #SP500. In fact, its correlation was much closer than #Bitcoinsits own correlation with the #SP500 over the past month. Too, #gold had a perfect inverse correlation with both. https://t.co/3TJH7zwjcd pic.twitter.com/BPatTroxGW
— Santiment (@santimentfeed) March 10, 2022
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