Bitcoin and Ethereum were relatively stagnant after four consecutive green days as all eyes turned to the release later this week of US non-farm payrolls (NFP) data and its impact on the dollar index.
Bitcoin has flirted with the US$32,000 level in the last 24 hours, giving crypto investors some much-needed hope of a revival following a torrid 2022 so far.
“However, it is highly possible that this bounce in the bitcoin price may be nothing more than a dead cat bounce unless the price respects the recent low formed by the BTC price,” Naeem Aslam, Avatrade chief market analyst, said.
Both the leading coins are over 50% below their all-time highs seen in November, with the global economic slowdown leading investors to seek safe haven assets over riskier ones.
Bitcoin rose 0.3% to US$31,600, while its closest rival by market capitalisation, Ethereum, fell 1.7% to US$1,934. The lack of movement may be because investors are holding out for the NFP data on Friday before they act in the crypto market.
“A strong US NFP reading may push the dollar index higher which could be negative for the BTC price as a higher dollar tends to push the BTC price lower,” Aslam added.
Overall, it was a mixed bag in the world of digital currencies, with 49 of the leading 100 cryptos changing hands in positive territory.
Tron and KuCoin Token were the biggest risers amongst the top 50, up 3.0% and 3.6% respectively on Wednesday morning.
Further down the pecking order, Waves and Kusama made more notable gains, having leapt 7.2% and 9.3% respectively.
Amongst the fallers, however, there were some more significant declines amongst known names, with Cardano and Near Protocol easing 5.9% and 6.1% lower respectively.
Axie Infinity reversed some of its gains made over the last two days, slipping 9.0%.