(Kitco News) – Cryptocurrencies continue to see choppy post-halving price action with little change in the overall picture as the market has been in a holding pattern for the past two and a half months as macroeconomic concerns have captured the focus of investors.
While cryptos traded sideways, stocks rallied into the market close after the return of meme stock frenzy enthralled traders, who watched the price of GameStop (GME) surge 60% on Tuesday following Monday’s 74% rally.
Alongside the gains for GameStop were short squeezes on theater chain operator AMC (AMC), which saw its stock price rise more than 100%, SunPower (SPWR), which spiked 90%, Beyond Meat (BYND), which climbed 25%, and Children’s Place, which gained 6%.
The rally in meme stocks came despite the latest Producer Price Index showing wholesale prices increased 0.5% month over month in April, above the 0.3% expected. It remains to be seen how the market will respond to the April Consumer Price Index report, which will be released on Wednesday.
At the closing bell, the S&P, Dow, and Nasdaq all finished in the green, up 0.48%, 0.32%, and 0.75%, respectively.
Data provided by TradingView shows that Bitcoin (BTC) retreated from the gains established on Monday, hitting a low of $61,045 near midday on Tuesday and trading at a price of $61,590 at the time of writing, a decrease of 2.4% on the 24-hour chart.
BTC/USD Chart by TradingView
The sideways price action comes as flows into spot Bitcoin ETFs have subsided, with the data from Monday showing a minimal net flow of $66 million into three of the ETFs while the other eight showed zero flows for the day.
On-chain analyst Ali Martinez noted that the Bitcoin accumulation trend score is now approaching zero, which means larger entities are selling Bitcoin as opposed to buying.
#Bitcoin accumulation trend score shows a value closer to 0, which indicates larger entities are distributing or not accumulating $BTC! pic.twitter.com/EBwDez3Klk
— Ali (@ali_charts) May 14, 2024
This fact prompted market analyst Moustaches to say, “You can sell everything here, OR you can just look at the history of $BTC and realize that we're at a point that's pretty exciting.”
#Bitcoin
You can sell everything here, OR you can just look at the history of $BTC and realise that we're at a point that's pretty exciting.
Weekly Stoch RSI also turns round. An extremely helpful signal in a bull market.?? pic.twitter.com/7xlFPoN7yw— ???????ⓗ? ? (@el_crypto_prof) May 14, 2024
And swing trader Roman helped provide additional perspective, noting that Bitcoin saw a similar three-month period of sideways price action following the 2020 halving before the bull market resumed and prices climbed higher.
Just a reminder that $BTC had the same 3 months of boring choppy price action after our last halving in 2020 before more upside.
Have some patience. This is never a very exciting period historically.#bitcoin #cryptocurrency #cryptonews pic.twitter.com/ibec9sR1NX— Roman (@Roman_Trading) May 14, 2024
Altcoins on the downtrend
The majority of tokens in the top 200 followed Bitcoin’s lead lower on Monday, with all but two dozen projects recording losses.
Daily cryptocurrency market performance. Source: Coin360
Arcblock (ABT) led the gainers with an increase of 12.9%, followed by a gain of 5.3% for BinaryX (BNX) and a 4.1% climb for SATS (1000SATS). Worldcoin (WLD) was the biggest loser, falling 15.3%, while Render (RNDR) lost 11%, and SuperVerse (SUPER) declined by 10.9%.
The overall cryptocurrency market cap now stands at $2.25 trillion, and Bitcoin’s dominance rate is 53.9%.
