Market Wrap: Bitcoin and Stocks Briefly Dip After Fed Comments; DOGE Rallies

BTC was roughly flat over the past 24 hours, compared with a 17% rise in dogecoin.

AccessTimeIconApr 5, 2022 at 8:27 p.m. UTC
Updated May 11, 2023 at 5:10 p.m. UTC
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Bitcoin (BTC) traded in a choppy range on Tuesday after U.S. Federal Reserve Governor Lael Brainard said the central bank could reduce the size of its balance sheet at a rapid pace.

“The [Federal Open Market Committee] will continue tightening monetary policy methodically through a series of interest rate increases and by starting to reduce the balance sheet at a rapid pace as soon as our May meeting,” Brainard said in a speech written for a Minneapolis Fed discussion.

BTC dipped by 3% following Brainard's statements, but stabilized later in the New York trading day.

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A more aggressive approach to tightening central bank policy sent jitters through the market as investors reduced their exposure to speculative assets. Stocks declined while the 10-year Treasury yield spiked to its highest level since May 2019.

In crypto markets, dogecoin (DOGE) rallied as much as 17% over the past 24 hours following Twitter’s (TWTR) announcement of Tesla (TSLA) CEO Elon Musk joining its board of directors. Meanwhile, SHIB, another dog-themed meme coin, was up 4% on Tuesday compared with a 13% decline in WAVES and flat performance in BTC over the same period.

Latest prices

Bitcoin (BTC): $45923, +0.22%

Ether (ETH): $3456, −0.77%

S&P 500 daily close: $4525, −1.25%

Gold: $1925 per troy ounce, −0.20%

Ten-year Treasury yield daily close: 2.56%

Bitcoin, ether and gold prices are taken at approximately 4pm New York time. Bitcoin is the CoinDesk Bitcoin Price Index (XBX); Ether is the CoinDesk Ether Price Index (ETX); Gold is the COMEX spot price. Information about CoinDesk Indices can be found at

Balanced demand for bitcoin

The dispersion in crypto returns on Tuesday indicates some uncertainty among traders, which is particularly evident in the bitcoin futures market.

For example, the average bitcoin funding rate, or the cost of holding long positions in the perpetual futures listed on major exchanges, has remained below positive for the 122nd consecutive day on Binance and Bybit, according to data compiled by Arcane Research.

"However, since BTC broke out above $45,000 last week, funding rates have normalized around neutral territory, suggesting that there is balanced demand for long and short positions at the moment," Arcane wrote in a Tuesday report.

And for ether, FundStrat noticed that funding rates have been positive for 10 consecutive days. That suggests traders are more bullish on ETH than BTC, which typically occurs during an up market.

Bitcoin funding rates vs. price (Skew, Arcane Research)
Bitcoin funding rates vs. price (Skew, Arcane Research)

Further, blockchain data shows that short-term bitcoin holders have been accumulating positions since BTC's recent price low set on Jan. 22, according to Glassnode.

Still, the average volume of BTC supply held in long-term holder (whale) addresses has plateaued. "This generally suggests that this wallet cohort are contributing the least to the current accumulation trends," Glassnode wrote in a blog post.

Bitcoin supply by large holders (Glassnode)
Bitcoin supply by large holders (Glassnode)

Altcoin roundup

  • Dogecoin rallies again after Elon Musk joins Twitter board: Dogecoin (DOGE) rallied on Musk joining the Twitter board. As part of the deal to join the board, Musk agreed to not bring his stake any higher than 14.9% from the current 9.2%, which still makes him Twitter's biggest stockholder. Read more here.
  • Universal Music Group files four trademarks for its Bored Ape Band leader: Universal Music Group (UMG) could be ramping up plans for its non-fungible token (NFT) band, filing four trademarks tied to the Bored Ape Yacht Club NFT it announced as the band’s leader in March. The trademarks indicate plans for crypto tokens, utility tokens, application tokens and non-fungible tokens. Read more here.
  • Digital Euro may get easier AML rules than Bitcoin, EU commissioner says: The European Union’s potential digital euro will face money laundering checks – but not necessarily ones as strict as those currently planned for regular cryptocurrencies like bitcoin, the European Commission’s Mairead McGuinness told CoinDesk Tuesday. Read more here.

Relevant reads

Other markets

Most digital assets in the CoinDesk 20 ended the day higher.

Largest winners:

Asset Ticker Returns Sector
Dogecoin DOGE +15.9% Currency
Filecoin FIL +2.6% Computing
Internet Computer ICP +1.3% Computing

Largest losers:

Asset Ticker Returns Sector
Cosmos ATOM −2.7% Smart Contract Platform
Algorand ALGO −2.7% Smart Contract Platform
Ethereum Classic ETC −1.2% Smart Contract Platform

Sector classifications are provided via the Digital Asset Classification Standard (DACS), developed by CoinDesk Indices to provide a reliable, comprehensive, and standardized classification system for digital assets. The CoinDesk 20 is a ranking of the largest digital assets by volume on trusted exchanges.


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CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Damanick Dantes

Damanick was a crypto market analyst at CoinDesk where he wrote the daily Market Wrap and provided technical analysis. He is a Chartered Market Technician designation holder and member of the CMT Association. Damanick is also a portfolio strategist and does not invest in digital assets.

Angelique Chen

Angelique is a market contributor at CoinDesk.

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