First Mover Asia: Bitcoin Dominates but Altcoins Lurk

Although Terra’s collapse has raised existential questions about the future of DeFi, some traders appear to be preparing for a return to altcoins; BTC remains rangebound below $30,000 in Tuesday trading.
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Technician’s take: Technical indicators are neutral and upside appears limited from here.

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Prices

Bitcoin (BTC): $29,672 +2%

Ether (ETH): $1,978 +0.4%

Biggest Gainers

AssetTickerReturnsDACS Sector
Ethereum ClassicETC+12.8%Smart Contract Platform
FilecoinFIL+5.2%Computing
EOSEOS+4.7%Smart Contract Platform

Biggest Losers

There are no losers in CoinDesk 20 today.

Bitcoin fares better than other major cryptos

Bitcoin wasn’t going anywhere fast late Tuesday.

The largest cryptocurrency was up slightly but still trading below $30,000 and about midway in the two thousand dollar range that it’s occupied for almost two weeks since the crash of the UST stablecoin. Other major cryptos also rallied late to hit green, albeit not by much, as investors gripped tightly to their risk-averse bearishness.

Near the time of publication, bitcoin was trading at about $29,700, a 2% gain. Ether, the second largest crypto by market cap, was recently up less than a percentage point, while XRP, SOL and the meme coin SHIB each rose over 1%. Bitcoin’s price has dropped for eight consecutive weeks.

“Bitcoin is in the danger zone as sentiment for risky assets have fallen off a cliff,” Oanda Senior Market Analyst The Americas Edward Moya wrote.

Macroeconomic news offered little encouragement for investors.

Stocks about-faced from their healthy Monday gains after social media platform Snap Inc. (SNAP) issued a profit and earnings warning that swept up the tech sector, and the U.S. Commerce Department reported that new home sales plummeted 17% in April to hit a two-year low. The tech-focused tech-focused Nasdaq plunged 2.3%. The S&P 500 also fell, albeit more moderately.

Snap shares declined over 40% from their Monday close after the company said its revenue and profit would miss earlier projections for its second quarter, a victim of inflationary pressures and macroeconomic turmoil. According to The Wall Street Journal, the company’s CEO, Evan Spiegel, said in a presentation prior to the warning that he had asked managers to look for cost savings. Tech giants Meta (FB) and Google (GOOG) dropped about 7% and 5% respectively

The housing report reflected the impact of rising mortgage rates on would-be home buyers who are now priced out of loans they might have afforded when borrowing costs were lower earlier in the year. Meanwhile, the manufacturing and service purchasing managers index dropped to three- and four-month lows, primarily victims of rising prices.

In the smallest sliver of good news, the bitcoin Fear & Greed Index, which has been stuck in “fear” zone over the past month and reached its second-lowest recorded fear level in the index’s history last week, has improved slightly the past few days, suggesting bearish sentiment could diminish, particularly if bitcoin crosses $30,000.