Why Bitcoin (BTC), Ethereum (ETH) Are Rebounding Today

Bitcoin and Ethereum rose Wednesday evening but still traded below key psychological levels as the global cryptocurrency market cap increased 2.1% to $1.8 trillion at press time.

Price Performance Of Major Coins
Coin 24-hour 7-day Price
Bitcoin BTC/USD 2.9% -5.3% $39,289.74
Ethereum ETH/USD 2.5% -6.1% $2,890.95
Dogecoin DOGE/USD 2.8% 0.03% $0.14

Top 24-Hour Gainers (Data via CoinMarketCap)
Cryptocurrency 24-Hour % Change (+/-) Price
Secret (SCRT) +16.5% $4.80
STEPN (GMT) +15.3% $3.80
Convex Finance (CVX) +12.3% ​​$27.48

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Why It Matters: On Wednesday, President Faustin Archange Touadera of the Central African Republic validated a law that officially makes Bitcoin legal tender in the country, according to a report from Washington Post. The African nation’s national assembly passed a bill to that effect earlier this week. 

Major coins traded in the green as equities attempted to rally on Wednesday. Both the S&P 500 and Nasdaq futures were up 0.6% and 1.1%, respectively, at press time.

Equity investors were upbeat about strong earnings from a number of tech names and the exuberance seems to have extended to cryptocurrencies. Edward Moya, a senior market analyst at OANDA said Bitcoin’s rebound was somewhat muted and below the $40,000 level as the dollar continued to exercise strength. 

“If risk appetite remains strong on Wall Street, Bitcoin could continue to rally, if earnings continue to impress, but shortly after Thursday’s mega-cap tech earnings, markets may enter a trading range until next week’s FOMC decision,” wrote Moya, in a note seen by Benzinga.

Cryptocurrency trader Justin Bennett tweeted that the “odds of Bitcoin decoupling from stocks during risk-off periods is slim to none.”

“I don’t think it will ever happen, nor was it intended to. And the digital gold arguments make little sense as even gold suffers in times of fear,” said Bennett. 

Meanwhile, the number of Bitcoin addresses has been rising since the Russia-Ukraine war started, according to a tweet from Santiment. 

“Since then, there are 1,629 shark and whale addresses holding between 10 to 100k that are either new or have returned to this millionaire (or above) status,” said the market data platform.

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