Bitcoin, Ethereum, Dogecoin Fall On Powell’s Jolt

Major cryptocurrencies were seen trading in the red Tuesday evening as the global cryptocurrency market cap declined nearly 1% to $1.02 trillion at 9:09 p.m. EST.

See Also: How To Buy Bitcoin Anonymously 

Why It Matters: Bitcoin and Ethereum declines were in line with stocks, which saw a sell-off on Tuesday. S&P 500 and Nasdaq futures were largely unchanged at the time of writing.

Risk assets slipped into the red after Federal Reserve Chair Jerome Powell said that continued high inflation is causing hardships. 

“We have covered a lot of ground, and the full effects of our tightening so far are yet to be felt. Even so, we have more work to do,” said Powell to the Senate Committee on Banking, Housing, and Urban Affairs.

Powell noted there was a “long way to go” to getting inflation back to 2% and the road to the target was likely to be “bumpy.”

OANDA Senior Market Analyst Edward Moya said that Powell “killed risk appetite” on the first day of his Capitol Hill appearance. “Every major risky asset class was under pressure following Fed Chair Powell’s first day of testimony.”

“Bitcoin was down but able to hold onto the lower boundaries of its key trading range. Risk appetite is very vulnerable here and if this wave of risk aversion does not pass, cryptos may struggle,” said Moya.

Meanwhile, CNBC “Mad Money” host Jim Cramer asked on Twitter, “How long will crypto continue to trade with the NASDAQ and not with Silvergate.”

Michaël van de Poppe noted that Grayscale Bitcoin Trust (OTC:GBTC) spiked 11% on Tuesday breaking previous 2023 highs. The cryptocurrency trader said, “People are anticipating a likelihood of Grayscale winning against the SEC leading towards a spot [Bitcoin] ETF this month.”

Grayscale #Bitcoin Trust up 11% on the day, breaking previous highs of 2023.#Bitcoin price stalling around $22K, 15% beneath 2023’s high.

People are anticipating a likelihood of Grayscale winning against the SEC leading towards a spot #Bitcoin ETF this month.

— Michaël van de Poppe (@CryptoMichNL) March 7, 2023

Justin Bennett said that the odds of a correction in Ethereum are on the rise. “Ethereum appears to be edging closer to a 15% correction,” said the trader.

Pointing to the chart of the second-largest cryptocurrency, Bennett said in a note, “ETHUSD is coming off a significant trend line resistance at $1,720, extending from September 2021 low. And while the market remains sideways, the chart below hints at a potentially significant pullback ahead.”

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ETH-USD 3-Day Time Frame Chart — Courtesy Daily Price Action 

On-chain market intelligence firm Glassnode said that 40,000 BTC, worth nearly $886.78 million — associated with U.S. government law enforcement seizures are on the move.

“Of these, the majority appear to be internal transfers (so far), however approximately 9,861 $BTC seized from the Silk Road hacker have been sent to our Coinbase cluster,” said Glassnode.

Approximately 40k $BTC from wallets associated with US Government law enforcement seizures are on the move.

Of these, the majority appear to be internal transfers (so far), however approximately 9,861 $BTC seized from the Silk Road hacker have been sent to our Coinbase cluster. pic.twitter.com/afuEYcV18L

— glassnode (@glassnode) March 7, 2023

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