Top coins rallied Wednesday evening as the global cryptocurrency market cap rose 3.1% to $1 trillion at 9:08 p.m. EDT.
|Cryptocurrency||24-Hour % Change (+/-)||Price|
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Why It Matters: Memecoin bellwether Dogecoin soared 14.1% intraday and is up 24.1% for the week. DOGE’s intraday gains eclipsed those of Bitcoin and Ethereum on Wednesday.
DOGE’s 24-hour trading volumes soared a whopping 188.3% to $1.42 billion, while Ethereum and Bitcoin trading volumes rose 24.3% and 20% respectively in a similar period.
Dogecoin was the best-performing cryptocurrency in a 24-hour period, according to CoinMarketCap. Data from Coinglass showed that $4.54 million worth of DOGE was liquidated over 24 hours.
Santiment noted that DOGE rose above the 70 cents mark for the first time in 10 weeks on the “tail end” of Ethereum’s own breakout that took place over the last couple of days.
“Both [DOGE] whale transactions & trading volume spiked to August levels. Markets generally polarize when [memecoins] decouple,” tweeted the market intelligence platform.
#Dogecoin rose above $0.072 for the first time in 10 weeks on the tail end of #Ethereum‘s own breakout the past couple days. Both $DOGE whale transactions & trading volume spiked to August levels. Markets generally polarize when #memecoins decouple. https://t.co/9kf2EZz9va pic.twitter.com/nSIAfN7by9
— Santiment (@santimentfeed) October 26, 2022
Notably, the rise in DOGE comes as Tesla Inc TSLA CEO Elon Musk nears the deadline to buy Twitter Inc TWTR.
Cryptocurrencies diverged from stocks, which slumped on disappointing tech earnings on Wednesday. The Nasdaq and S&P 500 declined 2% and 0.7%, respectively, for the day.
U.S. stock futures were in the green. S&P 500 and Nasdaq futures were up 0.5% and 0.4%, respectively, at the time of writing.
On Wednesday, the Bank of Canada announced a smaller-than-expected hike in interest rates. The central bank increased the policy rate by 0.5 percentage points to 3.75% instead of an anticipated 0.75 bps hike, reported Reuters.
“The dovish surprise from the Bank of Canada is a game-changer for central bank tightening expectations. Crypto will struggle with a deteriorating global growth outlook, but extensive pain as a result of the bond market selloff could be ending soon,” said Edward Moya, a senior market analyst with OANDA.
“Bitcoin is now comfortably above the $20,000 level and now it will try to stabilize here until the FOMC meeting. If risk appetite remains healthy Bitcoin could grind higher towards the $22,500 level,” said Moya, in a note, seen by Benzinga.
Justin Bennett said that he doesn’t think the “macro bottom is in for [stocks] and [crypto].” The trader tweeted, “Relief rallies like this one are meant to throw retail off the scent. Looking around Twitter, it seems to be working.”
Relief rallies like this one are meant to throw retail off the scent.
Looking around Twitter, it seems to be working.
— Justin Bennett (@JustinBennettFX) October 26, 2022