Liquidity Crisis Hits Crypto Markets Hard; Can Bitcoin & Ethereum Recover?
As Bitcoin and Ethereum prices grapple with maintaining their bullish momentum this year, the overall crypto trading volume has experienced a decline in recent weeks. Despite earlier reports of trading volume solely in the Bitcoin segment reaching $37.1 billion, the total crypto market trading volume has now reached this figure, highlighting the drop in liquidity for risky assets.
This decrease in volume can be attributed to multiple factors, including the United States Treasury’s plan to refill its depleted Treasury General Account (TGA) and the impending monetary tightening policies of the Federal Reserve.
Crypto Trading Volume Takes a Hit
The dwindling crypto trading volume is a cause for concern in the digital asset market. Analysts anticipate the United States Treasury’s move to replenish the cash reserves, leading to a period of condensed liquidity. The riskier assets, such as Bitcoin and Ethereum, which are more sensitive to liquidity conditions, are likely to be affected the most. Macroeconomic analyst Noelle Acheson explained that these assets tend to be more impacted by liquidity than safer investment options like bonds and certain equities.
Also Read: On-Chain Data Shows Most Bitcoin Holders are Selling at a Loss – Coinpedia Fintech News
Impact of Treasury Account Replenishment
The drawdown of funds from the Treasury General Account at the Federal Reserve had previously provided a boost to the market by injecting money into the economy through government expenditures. However, as the Treasury aims to refill its almost empty TGA, a sizable amount of cash, estimated at $500 billion, will be withdrawn from the financial system. This move, coupled with the potential resumption of the Federal Reserve’s monetary tightening policies, is expected to have a substantial impact on risk assets.
“This is likely to especially hit risk assets as they tend to be more sensitive to liquidity conditions than safer plays such as bonds and many groups of equities,” macro analyst Noelle Acheson said.
“The Treasury drawing down its account at the Fed was one of the tailwinds for the market earlier this year, as money that would normally just sit there was put into the economy in the form of government expenditures,” Acheson explained.
Regulatory Crackdown Adds to the Woes
In addition to the liquidity challenges, the ongoing regulatory crackdown by the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) has led to the closure of several crypto firms in the United States. These regulatory actions have created further uncertainty and a challenging operating environment for cryptocurrency businesses.
3/4 Implications: Liquidity going to be very net negative. We have to refill roughly $500B in the TGA this means issuing bnds. With mkts purchasing bnds it means less $ for risk assets. Clawbacks on Covid19 funds+restarting student loan pmts means less $ on the consumer side also pic.twitter.com/ohHJiF7W6O
— Tom Dunleavy (@dunleavy89) May 28, 2023
Ethereum and XRP Hold as Altcoins struggle; Avorak Eases Trading in Chop Markets
The crypto market has recently been riding choppy waters as prices of altcoins are struggling. The volatile market presents investment challenges that limit investors, but altcoins like Ethereum (ETH) and XRP are holding amid the choppy market phase. This project has seen surges, while other digital currencies have faced significant volatility in the past weeks.
Avorak comes in handy, offering tools that assist in trading cryptocurrencies and leveraging AI in trading analysis, in turn making profits.
What is Ethereum?
Among the top cryptocurrency projects in the digital space, Ethereum is the second most popular, following its extensive use case. It is a second-generation crypto forged aimed to curb the challenges faced in the first-generation crypto.
Ethereum’s (ETH) value has seen a significant gain and has increased by over $1,000 from mid-May to the end of the month. Several factors behind this surge include increased adoption by institutions and the heightened need for DeFi projects and dApps.
As such, leveraging Avorak AI in trading Ethereum (ETH) is a profitable idea that any investor can get into, following its user-friendly interface.
What is XPR?
XPR is also holding amid the choppy altcoin market, as it has seen a gradual price increase over the past weeks. Its surge is indicated by a 25% increase in price since mid-May towards the end of the month.
XRP’s value increase can be attributed to its increased adoption and the favorable SEC lawsuit ruling against Ripple.
Despite the choppy market, Avorak trading is the best alternative to secure profits from the volatile market. Avorak Trading uses artificial intelligence (AI) in market analysis which can be tedious for traders using manual strategies. It also offers personalized recommendations that suit every trader’s personal preferences.
Avorak Trading Advantage in Choppy Markets
Avorak uses AI to analyze mass data sets and provides real-time results that traders can leverage. As such, its recommendations are up-to-date and are effective in minting profits off a choppy crypto market, regardless of the market conditions.
In the case of trading resilient crypto assets like Ethereum (ETH) and XRP, Avorak Trading is surely an effective platform that is reliable in analyzing these assets in the market.
It also gives accurate, personalized recommendations based on machine-learning languages as it is trained to respond in a human-like manner, making it an easy-to-use platform.
Avorak offers a set of features that allow traders to mitigate trading risks and maximize their profits in crypto markets. It also offers automated trading that is useful to investors who need more trading time.
Conclusion
As Ethereum (ETH) and XRP manage to hold steady in this choppy altcoin market, leveraging platforms like Avorak Trading assures better trading conditions.
The AI platform provides a set of tools that can be used by any trader, pro or novice alike, since it’s a user-friendly platform.
Avorak Trading offers real-time market analysis and personalized recommendations making it a very attractive trading platform. It’s evident that Avorak Trading is an essential project that can be the next big adoption used by traders in mitigating losses and minting significant profits.
Get more on Avorak Trading on:
Website: https://avorak.ai
Buy AVRK: https://invest.avorak.ai/register
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Binance Appoints Teng to Oversee Regional Markets Rapidly
The post Binance Appoints Teng to Oversee Regional Markets Rapidly appeared first on Coinpedia Fintech News
Binance has appointed Richard Teng(Chief Regulatory Officer of Singapore) to take charge of their regional markets outside of the U.S. This indicates the massive and consistent rise up the ranks for Teng, who only joined the world’s largest cryptocurrency exchange in less than two years. Teng’s new position on Monday expands his previous role leading Asia, Europe, the Middle East, and North Africa reported by the company’s speaker. He was CEO of Singapore in 2021 and quickly advanced during a turbulent period in digital assets.
Dogecoin Explores New Markets As Avorak AI Tightens Its Hold On AI Crypto
The cryptocurrency world constantly evolves, with projects and technologies constantly pushing boundaries. As Dogecoin explores new markets, Avorak AI has maintained tenacity in AI Crypto, displaying its capabilities while still in its initial coin offering (ICO).
What is Dogecoin?
Dogecoin (DOGE) is the first and largest meme coin by market capitalization. The cryptocurrency has gained the attention of many in the crypto community, including reputable names like Elon Musk and Mark Cuban. Unlike Bitcoin (BTC), which was designed to be scarce, Dogecoin is intentionally abundant, with no maximum supply. Nonetheless, Dogecoin (DOGE) has managed to rank among the top 10 cryptocurrencies by market capitalization and maintains a significant following and dedicated community.
Will Dogecoin go up?
Dogecoin’s price is highly volatile. However, the widely known Dogecoin price influence is Elon Musk. A single tweet from Musk can cause a notable spike in the coin’s price. Despite this, Dogecoin has a degree of vulnerability due to how easy it is for a single individual to influence its price. Additionally, the lack of substantial use cases for DOGE has placed constraints on the rise of its value. What perhaps is the major limitation to the future price of Dogecoin is its inflationary nature. The coin could still serve significant purposes in the crypto industry and has the potential to increase in price slowly, but capped supply tokens can grow much more sustainably in the long term. Nonetheless, the crypto market is highly unpredictable, and as Dogecoin explores new markets, it could go up.
Avorak AI: The leader of the AI crypto bull run?
Avorak is a new AI crypto project, and many expert analysts and investors have suggested that it has the potential to lead the AI crypto wave. Avorak AI is the first platform to offer a comprehensive set of advanced AI-driven solutions within a single interactive AI through the blockchain. Avorak’s AI, AVA, includes solutions for text generation, image creation, online shopping, trading, 3D modelling, base architectural blueprint drafting, and more.
The first-to-market strategy assures Avorak’s solutions stand out in the market and allows the project to get ahead of the competition. For example, the Avorak AI trading bot uses a simple command-line input programmed with a standard script such as: ‘When BTC reaches $30,000, sell 0.25 BTC in my Binance futures account.’ This intuitive approach eliminates the need for extensive coding knowledge, making it accessible to traders of all levels of expertise. Additionally, the Avorak Trade bot can automate trades regardless of the exchange or asset class, using AI algorithms to find the best trades. Avorak Trade also provides price predictions supported by an extensive range of indicators, enabling traders to make well-informed decisions.
Avorak has also combined its AI blockchain capabilities with unique digital art to create a one-of-a-kind NFT collection. Along with their uniqueness, Avorak’s NFTs offer utility benefits to their holders, such as free access to Avorak Trade for life. Avorak’s native token will be required to access its AI solutions. AVRK has a maximum supply of 40 million and guarantees a portion of Avorak’s profits. AVRK can be staked to increase the hold of the project’s market cap or traded on centralized or decentralized exchanges.
The Avorak AI initial coin offering (ICO) has had a successful run for the past three months and is slowly rising to the anticipated launch price of $1. The ICO is entering phase 7, indicating a 325% increase in AVRK’s price.
For more information on Avorak AI and its ICO:
Website: https://avorak.ai
Buy AVRK: https://invest.avorak.ai/register
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This is How Markets May Trade During the Weekend!
The crypto bulls have once again marked their presence as the global market capitalisation is back above $1.2 trillion, with a jump of over 1.33% compared to the past day’s close. However, the markets are about to experience high volatility, probably in the coming weekend, which may lift the crypto space.
Bitcoin, on the other hand, is trying hard to recover from its recent losses. The price is displaying a bullish trend as it has recorded some gains in the last 24 hours. The BTC/USDT pair surged to reach beyond $26,700 as investors showed more interest in the star crypto. The short-term price trend indicates a fresh rise may be triggered after breaking some crucial levels.
The Bulls appear to have made a successful comeback after being passive for quite a long time. The current conditions appear to be much in favour of bulls, as the price with the next breakout is believed to rise beyond $27,000. The Bollinger bands are widening, which suggests the markets are about to experience significant volatility soon. Besides, the RSI is also rising, indicating the rise of buying pressure within the markets.
The MACD is also closer to displaying a bullish crossover as the selling volume has waned, allowing the buying volume to accumulate. Therefore, the bullish momentum has been building steadily for the past few hours, and if it persists, the BTC price may soon reach the interim target of around $27,000. Although the bears may intervene at frequent intervals, the bulls may counter all the bearish waves and keep the prices above $26,000.
Moreover, technical indicators have turned positive, which suggests the prices may remain elevated throughout the weekend.
Bitcoin Plunging Down-What You Can Expect From the Crypto Markets Ahead FOMC MoM
The crypto market is plunging; the bitcoin price dropped below crucial levels around $26,400 as the FOMC minutes are about to be released. The traders are eagerly waiting for the minutes, and at the same time, the bears and the shorts are successfully dragging the price lower. Moreover, the transcripts of the previous meeting are about to be published in a short while.
Therefore, fine volatility is expected to kick-in within the markets very soon.
The BTC price began to slump in the early trading hours as it failed to hold support at $27,000. However, the probability of the price reclaiming these regions was pretty high during the early trading hours, but that faded as the trade proceeded ahead. Presently, the BTC price is displaying the possibility of maintaining a steep descending trend that may further accelerate a more bearish divergence to reach $26,000.
The BTC price has faced rejection from the 50-day MA levels in the daily time frame since the beginning of the month. However, the 100-EMA levels are trying hard to hold the rally, but the bearish influence is slowly outperforming the bullish attempts.
Hence, the price is further believed to face another rejection from the 100-EMA levels that may drag the price lower to levels close to $25,000, or an extended bearish trend may compel the price to trade below $25,000 in the next 24 to 48 hours.
Although the RSI is plunging, the MACD is displaying the possibility of a bullish crossover. However, the volume continues to remain depleted, which may be a matter of concern at the moment and may weaken the bulls to a large extent.
Therefore, the FOMC minutes are believed to induce significant volatility within the crypto space, and the current descending trend is believed to continue until the tokens reach their respective support levels.
Axie Infinity Game is Now Available on Apple App Store in Major Markets
The post Axie Infinity Game is Now Available on Apple App Store in Major Markets appeared first on Coinpedia Fintech News
Sky Mavis, the creator of Axie Infinity NFT, is launching Origins Card Game on the Apple App Store in key markets. The game, previously available only in limited regions, has gained popularity with 1.5 million installs worldwide. Mavis is expanding on the Ronin Blockchain and partnering with game developers while strengthening security after a major hack. CEO Trung Nguyen plans to open a merch store and promote a digital nation vision.
US Debt Default Threatens Crypto and Stock Markets, Bloomberg Strategist Warns
Bloomberg Intelligence’s senior commodities analyst, Mike McGlone, has issued a stark warning that a potential US debt default could have a significant impact on crypto and stock markets.
He recently made his comments during a recent Wolf of All Streets roundtable discussion, where he stated that he is bearish on crypto assets and stocks, while bullish on gold.
Alarming Prospects of US Debt Ceiling:
McGlone’s concern is rooted in the possibility that the US may default on its debt, with Treasury Secretary Janet Yellen having recently mentioned the word ‘default’ during negotiations to raise the US debt ceiling before the June 1st deadline.
Getting deep into his analysis he argues that a default could significantly impact risk assets, stating that
“It keeps me very bullish on things like gold, very, very bearish things like the stock market and broad cryptos because I don’t think this is going to come to an agreement until markets make that.”
These comments have made him more bullish on gold and negative on stocks and cryptocurrencies.
Gold Shines, Stocks, and Cryptos Suffer
He justified his claim with the 2011 market downturn, where the stock market dropped significantly due to the debt crisis. However, he believes that an agreement will eventually be reached as policymakers will realize that a global economic crash is imminent.
However, amidst the crisis, he says there is a ray of hope. Once an agreement is reached to raise the US debt ceiling, he believes risk assets will rally. In his best-case scenario, waking up to the news of an agreement would trigger a surge in risk assets, with Bitcoin potentially benefiting the most.
Final thoughts
He concluded his stance by suggesting that the most probable outcome is that the market’s reaction to the potential US debt default will exert pressure on policymakers to reach a resolution. This pressure would likely result in the debt ceiling being raised to avoid severe consequences for the global economy.
As the June 1st deadline looms, the fate of crypto and stock markets hangs in the balance. Investors are advised to stay vigilant and monitor the developments closely.
Top Altcoins With Huge Development Activity: Are Crypto Markets Bracing Up for an Altseason?
The crypto space underwent a roller coaster ride in the past few hours as the Bitcoin price again tested the resistance at $30,000 which was followed by a massive drop. Amid the uncertain market behavior, some of the platforms continue to display their seriousness about business propotion.
A popular on-chain platform, Santiment, observed a rise in the development activity of three platforms. The rise in activity is expected to attract market participants, who usually turn bullish with the surge. While the BTC price continues to hover within the consolidation zone, these altcoins could thrive in the coming days.
As per the data recorded by Santiment of the development activity of the top 20 platforms, Polkadot leads the table with the highest development activity.
Kusama and Cardano followed in second & third positions, but a notable drop was recorded with Filecoin and Elrond. The development activity depends on the GitHub commits, and the above table is based on the activity in the past 30 days.
The sentiments of the markets turn bullish with the rise in development activity, which indicates the team behind the project is working hard to deliver new upgrades or features in the coming days.
This may make the market participants and the whales bullish on the platform in the long term, impacting the price of the token in a positive way. Therefore, a notable rise in Polakdot (DOT), Kusama (KSM), and Cardano (ADA) prices may be expected in the coming days.
Altcoin Markets in Jeopardy With Regulatory Crackdowns on the Horizon
As cryptocurrencies continue to attract mainstream attention, concerns are mounting about the future of the altcoin markets. Renowned macroeconomic analyst Lyn Alden is issuing a warning to investors, highlighting the potential risks posed by regulatory enforcement actions and excessive leverage.
In a recent interview on the Hedgeye podcast, Alden explains why these factors could trigger a downturn in the altcoin markets, leaving investors vulnerable to significant losses. Continue reading for more details
Bitcoin Might Not be Affected by Regulatory Action
Alden points out that Bitcoin (BTC) might not be affected and explains Bitcoin should be distinguished from the rest of the crypto space due to the high noise-to-signal ratio that characterizes the broader crypto landscape.
According to Alden, there is still a lot of froth that needs to subside in the market. Moreover, the space is experiencing increasing regulatory action aimed at defining which assets and companies have violated security laws by selling such assets to the public. As a result, investing in the broader crypto space entails a lot of risks. She, therefore, recommends caution when investing significant capital in this area.
Bitcoin will remain relatively unaffected by regulatory enforcement because it is recognized as a digital commodity rather than a security, making it less susceptible to regulation. This is because it does not meet the conditions of the Howey test, she comments.
Alden further notes that Bitcoin’s decentralization fundamentals are stronger than those of other cryptocurrencies and that a lot of the speculative activity in the Bitcoin market has already been corrected through a recent bear market, which has discouraged many “tourist” investors.
In conclusion, the potential for regulatory enforcement actions and excessive leverage could lead to a decline in the altcoin markets. However, Bitcoin’s status as a digital commodity and its stronger decentralization fundamentals could insulate it from the worst effects of such regulatory measures.
Crypto Markets On Edge: Top 6 Events To Watch This Week
The cryptocurrency market is currently in a state of flux as it faces mounting regulatory scrutiny from the SEC, with Bitcoin and Ethereum experiencing significant weekly declines.
However, crypto investors and enthusiasts alike are eagerly anticipating key events this week that have the potential to sway the market in a new direction.
Curious? Read on!
Consumer Confidence Data – Tuesday (25th April)
The release of consumer confidence data can provide valuable insights into the general sentiment of consumers in the economy. High consumer confidence can indicate favorable economic conditions and potentially lead to increased investment in cryptocurrencies as a result. Conversely, low consumer confidence can signal economic uncertainty and may lead to a bearish crypto market.
New Home Sales Data – Tuesday (25th April)
New home sales data can serve as an indicator of the health of the housing market and the overall U.S. economy. Strong new home sales figures could signify a growing economy, positively impacting the crypto market. However, weak sales numbers could dampen market sentiment and lead to a downward trend in cryptocurrency prices.
Q1 2023 GDP Data – Thursday (27th April)
The Q1 2023 GDP data release can provide a snapshot of the overall economic growth during the year’s first quarter. A robust GDP growth rate can positively influence the cryptocurrency market, suggesting a strong and growing economy. On the other hand, a weak GDP growth rate might contribute to a bearish crypto market, as investors may seek safer investment options.
15%+ of S&P 500 Companies Report Earnings – Thursday (27th April)
Earnings reports from a large portion of S&P 500 companies can provide a broader view of the financial health of major corporations. Strong earnings across the board can contribute to a positive market sentiment and potentially boost cryptocurrency prices, while weaker earnings could lead to market uncertainty and a negative impact on the crypto market.
- March PCE Inflation Data – Friday (28th April)
PCE inflation data can shed light on price changes for personal consumption expenditures, impacting the consumer behavior and the overall economy. High inflation figures might lead to increased interest in cryptocurrencies as a hedge against inflation. In contrast, low inflation numbers could signal a stable economy and potentially lead to decreased interest in digital assets.
Mega-cap Tech Report Earnings – Friday (28th April)
Earnings reports from mega-cap tech companies can significantly impact the stock market and, in turn, the crypto market. Positive earnings results could lead to increased investor confidence and a bullish crypto market, while disappointing earnings may result in a bearish market trend.
At press time, Bitcoin was worth $27.313, Ethereum was valued at $1,840, and the global crypto market was at $1.2 trillion.
The crypto market is facing a pivotal moment. How do you think it will play out? Stay tuned for more updates!
South Korean Court Exonerates Terra Classic of Violating Capital Markets Act; LUNC Is Not a Security!
Terra Luna Classic (LUNC), a blockchain that rebranded from Terra chain following last year’s collapse, has attracted the attention of global regulators. With Do Kwon already under custody, the attention has significantly shifted to regulating the industry to curb such incidents in the future. Moreover, Kwon does not have assets that can be liquidated to repay the affected customers.
In a bid to keep blockchain and crypto companies in check, a debate is expected to be on whether digital assets should be traded as a security or a commodity.
LUNC is Not a Security
Reportedly, a South Korean district court has rejected the prosecution’s claims that Terra Classic’s native coin LUNC is security. The judge noted that there is no substantial evidence that LUNC has violated the Capital Markets Act.
The ruling is a bold move for the South Korean government that is currently prosecuting Do Kwon for fraud through crypto and blockchain technology.
Previously, other South Korean courts have ruled that crypto assets are not securities although the room for discussion on the law interpretation stands.
Price Action
The announcement had a little positive impact on the LUNC price action. According to the latest crypto market update, LUNC traded around $0.00011071 on Monday, down approximately 2.8 percent in the past 24 hours. The LUNC price is, however, far from attaining LUNA’s former ATH of around $119. While most digital assets have recorded positive gains YTD, LUNC price has been on a decline since the calendar flipped.
Bigger Picture
Following the ruling that LUNC is not a security, the XRP community hopes the Manhattan judge could follow a similar path in the SEC vs Ripple case. Furthermore, there are minimal differences between LUNC and XRP in execution.
Bitcoin Price Live: Bearish Signals Emerge for the BTC Price-How Markets Might React?
The bearish cartel appears to have strengthened its grip over the markets, as the star crypto, Bitcoin, drops back below $30,000. After holding tight above these levels for nearly a week, the fresh price plunge has been flashing the possibility of more significant price action, but towards the south. However, the price closed the previous week’s trade beyond $30,000, rising over 8% in a week and recording the highest weekly bullish candle since May 2022.
Therefore, will the recent plunge impact the impending rally and even the altcoins within the markets?
Bitcoin presently is getting towards the long areas, and a notable pullback may be in the range. This pullback may be considered a good entry point, as the price is believed to rebound and rise beyond $32,000 soon. In the event of a bearish pullback, the BTC price is expected to drop close to $28,600. However, despite a rebound, the price may still fail to reach new highs for now.
Presently, the Bitcoin RSI is close to breaking down from the bullish pattern, and a significant pullback appears imminent.
The analyst here refers to the RSI, which has been forming a similar pattern for the past 12 months. Each time the RSI levels break down the support and plunge, the BTC price suffers a bearish pullback. Currently, the RSI levels are testing the lower trend support line, and if they fail to bounce, another bearish wave may be triggered for the BTC price.
The Bitcoin price, which is currently trading just below $30,000, may try hard to reclaim the levels. But in the meantime, if the bearish volume intensifies, then the levels may drop below the support, compelling the price, to begin a descending consolidation. This may further compel the major cryptos like Ethereum, XRP, Cardano, Polygon, etc. to remain consolidated within a narrow region until Bitcoin manifests a larger price action, regardless of the direction.
Can Crypto Markets Survive A Massive Recession In The USA?
A potential United States recession in the second half of 2023 is looming over the crypto market, according to Michael van de Poppe, a renowned crypto expert. In a tweet, he highlighted the Federal Reserve‘s (Fed) preparation for a mild recession, stating that it is an understatement.
Van de Poppe emphasized that despite the Fed’s suggestion of a mild recession, the economy will see a much stronger recession due to the shocks from the fast-paced hikes. He also predicted that Bitcoin‘s price could hit $40,000 to around $50,000 and then face a correction.
Fed’s Banking Crisis Likely to Push U.S. into Recession
According to Federal Reserve documents, the current banking crisis in the U.S. is likely to push the economy into recession later this year. While the Vice Chair for Supervision, Michael Barr, said the banking sector is “sound and resilient,” various economists expect the economy to take a hit.
Related: Banking Crisis Looms: Is Crypto The Future Of Secure Investing? – Coinpedia Fintech News
The experts projected a mild recession to start later this year, with a recovery over the subsequent two years. However, projections following the meeting indicated that Fed officials expect GDP growth of just 0.4% for all of 2023.
Crypto Markets on a Bull Run
The news of the recession prediction came at a time when the crypto market has been on a bull run, with Bitcoin smashing resistance at $30,000 and reaching a 10-month high. The interest rate hike announcement by the Fed caused a 7% surge in Bitcoin’s price on Wednesday.
However, the rise in interest rates could put pressure on the flow of liquidity that pumps the Bitcoin price higher, along with other investment assets.
Technical analysis shows that Bitcoin is facing substantial resistance near the $30,580 threshold, and a drop in candle closes below this point could initiate a downward trend towards $29,500. Bitcoin was worth $30,263 at press time.
Do you think Bitcoin can weather the storm of a predicted recession?
Binance.US Delists Markets Tron’s TRX
The post Binance.US Delists Markets Tron’s TRX appeared first on Coinpedia Fintech News
Tron’s TRX token is being delisted from Binance.US after the U.S. Securities and Exchange Commission (SEC) sued Tron’s Justin Sun over allegations of fraud and market manipulation involving the TRX token. TRX dropped 6.4% on the news, with trading set to end on April 18. Binance.US stated that its digital asset monitoring process is designed to be responsive to market and regulatory developments and will conduct a more in-depth review if necessary.
Devaju Movement on the Cards: Crypto Markets Brace Up for Ethereum Shanghai Upgrade
The much-needed catalyst for the Bitcoin price, which was stuck around $28,000, emerged in the form of the Ethereum Shanghai Upgrade. The prices of the top cryptos, like Bitcoin, Ethereum, Cardano, XRP, etc., and many more, leaped far beyond their respective resistances. The entire crypto space is currently painted green, which is assumed to be a signal of the end of the 2022 bear market.
The Bitcoin price was stuck around $28,000, as one of the major resistance levels around $28,500 acted as a tough barrier to breach. The price in the early trading hours surged beyond the milestone at $30,000, signaling the revival of the bullish trend.
Meanwhile, the upswing does seem unhealthy, and hence one of the top analysts, Kaleo, warns his 575,200 followers not to fall into the bullish trap.
The analyst also says that the year 2024 and 2025 is believed to be a ‘shitload of fun for alts’, meaning, the altcoins are believed to thrive in the coming years, outperforming Bitcoin.
Besides, the second largest crypto, Ethereum has also surged beyond the crucial resistance at $1900 and is just an inch away from achieving yearly highs above $2000. Will the upswing prevail for long or it may turn out to be the biggest bull trap ever?
It is worth noting that the current week is pretty much important not only for the crypto space but also for the equities. Not only Ethereum Shanghai upgrade will be rolled out this Wednesday but US CPI rates will also be announced. Moreover, the schedule until the weekend includes FOMC MoM, PPI inflation data, Retail Sales data, and Consumer sentiment data.
While so many events are lined up with the biggest event within the crypto space, the trend should only be considered permanent once the markets cool down.
Crypto Market Analysis: Here’s What Can You Expect From the Crypto Markets In Q2 2023
The Q1 close was expected to be a massive one, pushing the Bitcoin prices above $29,000 and a step ahead toward $30,000. However, the price continued to consolidate within a narrow range displaying the possibility of continuing with a consolidated trend in the coming days.
In such a case, when will the BTC price break the consolidation? After the breakout, will the price surge high or display a short-term bounce?
Bitcoin price usually follows a repetitive pattern from the past and has been following the pattern finely. The past month’s breakout also carried the same legacy and hence is believed to print a couple of consecutive bullish monthly candles ahead.
As mentioned in the above chart, the BTC price is displaying a similar price action as it did in the past. The price surged magnificently to mark the highs and dropped further to reach the lows. This was followed by a significant upswing which recorded huge bullish candles in the next couple of months.
The recovery led the BTC price to raise to new highs further. Considering the previous data, one can expect a fine upswing in Q2 with the Bitcoin price soaring above $30,000 in the first few weeks of April. Once the price reaches the crucial resistance close to $35,000, a notable upswing may prevail until the end of H1 2023.
Bitcoin Continues To Defy All Odds As Crypto Markets Face Turmoil: How Can You Benefit?
As Bitcoin continues to endure scrutiny from the SEC and banks, and pressure from the rising interest rates and an under-pressure stock market, expert crypto analyst Jonathan Fiorenza believes that any pullbacks from the current price point offer a significant opportunity. He is of the opinion that high-timeframe investors should leverage this.
Bitcoin Holds Strong
Bitcoin’s price point of $27,727 indicates that the cryptocurrency is performing well, despite facing challenges from regulatory bodies and a volatile market.
However, here’s how people could still benefit.
With all moving averages angled upwards, strong momentum could push prices higher, though structural changes and upcoming airdrops could also play a role in influencing the market’s behavior.
Meanwhile, the S&P 500 is stuck in a range between the 0.75 and 0.5 levels, with a break either up or down likely to determine the next direction of the market. Traders can use this to their advantage by keeping a close eye on the broader market’s movements and monitoring the range’s upper and lower limits.
Rising Interest Rates Challenge Crypto and Stock Markets
The quarter-point interest rate rise by the Federal Open Market Committee (FOMC) in line with expectations presented a challenge for both the crypto and stock markets.
Traders took profits on a 20% gain over a seven-day rolling period, causing Bitcoin to slide under $27,000. BTC-tracked futures traders experienced over $150 million in losses, with longs accounting for over 75% of these losses.
The FOMC decision reinforced the Federal Reserve’s commitment to returning inflation to its 2% objective. However, traders were caught offside by the move higher after the meeting, causing billions in open interest to be effectively washed out.
Crypto Markets Shall Face An Inevitable Correction, Warns Peter Brandt
The banking crisis has certainly brought the US down to its knees but has proved incredibly beneficial for the cryptocurrency industry, as was witnessed by the massive price hikes last week. The weekend was bullish as well, and the star crypto is enjoying an impressive rally.
Notably, the banking crisis began with three regional United States banks: Silvergate Capital, Silicon Valley Bank, and Signature Bank. The crisis escalated when the decades-old multi-billion bank, Credit Suisse, announced a merger with UBS group in a deal worth $3.2 billion.
Bitcoin Price Rally
According to our latest crypto price oracles, Bitcoin jumped to a nine-month high of around $28.4k over the weekend after gaining over 25 percent last week. Similarly, top altcoins, including Ethereum, Binance’s BNB, and Solana, joined the weekend’s rally with a double-digit percentage gain.
Despite the recent crypto rally, top analysts think Bitcoin and altcoin markets could soon enter a correction phase and perhaps a multi-quarter consolidation.
Peter Brandt Dares Bitcoin CME Traders
With the crypto market having registered high institutional cash inflow, the relationship between digital assets and equities has displayed shared technical knowledge. For the uninitiated, there is an old saying in the forex trading industry that says the market never forgets. As such, the market eventually fills the old gaps left during heightened volatility.
According to veteran trader Peter Brandt, the Bitcoin market is bound to correct following two large gaps left in the daily chart.
“Two huge unfilled gaps. I encourage you hot-shot young guns to go short Bitcoin,” Brandt noted.
Such a correction could send Bitcoin price below $19k and perhaps retest the $16k support level. Moreover, the futures market heavily influences the underlying derivatives market. Nonetheless, the gap could be left unfilled as the Bitcoin market rallied toward $30k and beyond in the near term.
Crypto and Stock Markets Might Crash Within Days: Warns Larry Mcdonald
The second-largest stablecoin, USDC, from Circle Internet Finance, which has a $42 billion market valuation, de-pegged from the dollar as a result of the Silicon Valley Bank collapse. The price of the USDC/USDT trading pair on Kraken fell as low as $0.94, marking its lowest level since April 2021. Concerns over the effects of Silicon Valley Bank’s bankruptcy caused USDC to decline from $1 on Friday, despite the fact that it is intended to retain a 1-to-1 peg with the U.S. dollar.
Lately, the market has been chaotic with the collapse of the SVB Bank and Signature Bank. This is bound to have negative long-term extents. Let’s assess to what extent.
Biden Administration to bail out collapsed banks
Emergency procedures were implemented by US banking regulators on Sunday night to stop any possible spillover from Silicon Valley Bank’s failure. One of the procedures is making sure depositors at the bankrupt bank can access all of their funds. The news was made after regulators on Sunday liquidated Signature Bank, the second failed institution in a week. According to the announcement, depositors in Signature would likewise be fully reimbursed.
Larry Mcdonald Predicts Crash
The Bear Traps Report founder Larry McDonald said on “Mornings with Maria” that the Fed is trying to catch up as inflation has started to rage. He added to this by saying that the 21 Lehman systemic risk indicators that look at equity and credit point to one of the highest probabilities of a crash in the stock market looking out 60 days.
As the Fed begins its most aggressive rate hike campaign since the 1980s to combat decades-high inflation, McDonald claimed that the outflow of capital from middle-class families has been “spectacular”. The consumer price index is still around three times higher than the pre-pandemic average, but gradually declining from a peak of 9.1% reached in June of last year.
Given the current state of affairs, McDonald’s prediction does not appear to be far-fetched.
But, every cloud has a silver lining, and there are ways to profit from such markets. Make sure your investments are diversified and do extensive research.
Have Crypto Markets Risen Above the Bearish Captivity? Here’s What to Expect This Week
Bitcoin’s price suffered a massive crash due to the collapse of a US bank in just a couple of days and displayed its strength and self-assurance to maintain a healthy upswing. However, it has also to be noticed that the bulls are just preventing the price from plunging below the threshold rather than uplifting beyond $25,000, which is considered an important milestone to trigger a fine bull run ahead.
Woefully, the upswing appears to have been delayed a bit, as the markets are not yet done displaying sudden changes. The upcoming week is also extremely volatile, as multiple events are set to knock off the crypto space. The price of Bitcoin and other altcoins is believed to vary, regardless of direction.
Kobessi Letter, the weekly commentary on the global capital markets that address economic and technical trends, lists the events that may be responsible for significant volatility within the markets.
As mentioned above, there are key events lined up throughout the week that may impact the markets too. The Bitcoin price has risen above the SVB’s fallout, but major volatility may be on the way to hinder the progress of the rally. The CPI and PPI data for February may have a larger impact. Each time, the prices rise slightly and quickly drop, wiping out all the gains incurred in the past couple of days.
Moreover, the retail sales and jobless claims followed by mass tech layoffs due to the failure of SVB may not only impact the crypto space but also the traditional markets too. Moreover, this is the most important week for the stock markets since 2008. As the markets are not only dealing with the SVB fallout but may also receive crucial inflation data. Hence, both market sentiments and FED policies may be dictated this week.
Crypto Market’s Outlook for Next Week: Is a Severe Crash Waiting for Traders?
The crypto market has witnessed a severe plunge this week, and traders are now wondering if the market has reached its bottom or if another crash is on the horizon. As several macro events continue to shake the industry, the next week is crucial as several game-changing events will take place, determining the crypto market’s movement in the upcoming week.
Volatile Sessions Will Rule The Market
Today, the crypto market witnessed a massive selloff as investors identified risks after the collapse of the crypto-friendly bank Silvergate. Moreover, President Joe Biden’s proposed budget aims to “reduce mining activity” and could potentially subject crypto miners in the United States to a 30% tax on their electricity costs, resulting in a negative impact on the crypto space’s future.
The U.S. jobs data is under close scrutiny by traders, who are looking for signs of strong growth like in January with a low unemployment rate. Recently, the Labor Department released data showing that the U.S. economy added 311,000 jobs in February, with the unemployment rate increasing to 3.6 percent. The gain in jobs exceeded economists’ expectations, potentially increasing pressure on the Federal Reserve to accelerate rate hikes.
This could result in an extension of rate hikes and a 50-bps rate hike announcement this month. However, doubts over the Fed’s monetary policy in the upcoming months will be clarified after the release of U.S. CPI inflation data on March 14.
Hence, a rate hike after 14 March will eventually bring more volatility for crypto assets and lower the demand from investors willing to invest in the sector.
Bitcoin To Determine Next Week’s Trend
If the Fed comes up with strict monetary policies and rate hikes to combat the high inflation rise, it may significantly affect Bitcoin’s price and plunge the asset with another crash to the $15K level.
As of writing, Bitcoin price trades at $20K, with a decline of over 7% in the last 24 hours. The sharp decline in the BTC price chart has forced other assets to witness a similar meltdown. Over the past day, Dogecoin, Shiba Inu, Solana, and XRP have all experienced losses of approximately 10%, 9.20%, 9.50%, and 8%, respectively. The global crypto market also saw a downturn, falling by almost 8% and dropping below the $1 trillion mark for the first time since mid-January to reach $918 billion.
If the crypto market comes across another bad news next week, it may plunge Bitcoin’s price to December levels near $16K, marking another crash for the industry.
Bitcoin Bears Are Likely To Dominate Longer: Traditional Markets To Blame?
Bitcoin displayed an unexpected move in the past few days by squashing the possibilities of reaching $30,000, enrouting through $25,000 initially and later at $28,000.
However, the recent price plunge changed the entire scenario, as now the price is expected to revisit the support below $20,000 again.
The price of Bitcoin dropped from the ascending triangle and eliminated the possibilities of a bullish reversal for some time, as the market may remain consolidated for an extended period.
Will the Bitcoin price continue to consolidate towards the south, or may a bullish push relieve the token from bearish influence?
A popular analyst, DonAlt, tells his 464.8K followers that the traditional financial markets, like stocks, may have a bearish impact on the Bitcoin price. According to him, the BTC price may flip the bearish trend once the traditional markets turn bullish.
“BTC is being dragged by the traditional markets but refusing to make a new lows while the S&P [stock index] is bleeding out. The moment the traditional markets bounce, I’m expecting a massive outperforming green candle from BTC,”
The analyst further updated that, in the times when the BTC price traded flat, the traditional markets rallied big. He also notes that BTC’s less-than-stellar reaction to the stock market bounce is not “optimal.”
Meanwhile, another popular analyst, Altcoin Sherpa has also laid down the possibilties of an extended bear winter.
“BTC: some mark the top as May 2021. Others mark it at November 2021. Either way, it’s been a long time during this Bitcoin bear market.
And there’s likely to be much longer before BTC price truly ‘bottom’s out’.
Crypto Market’s Outlook For Next Week: These Key Events Will Decide March’s Trend
The cryptocurrency market has been making headlines due to several financial crises and SEC’s scrutiny going through the space with unpredictable fluctuations. It seems that the upcoming week will be no exception as the market will likely remain volatile ahead of major macro events. With several key macro events on the horizon, investors and analysts are closely watching the market’s next moves. From the Federal Reserve’s meeting to Bitcoin’s difficulty adjustment, each of these events has the potential to significantly impact the cryptocurrency industry’s trends and direction next week.
What Can Market Traders Expect Next Week?
This week the crypto market met intense volatility with a sharp decline on Friday. The cryptocurrency market is always filled with surprises, and this week was no different. Several events rocked the market, including the SEC’s investigation into Binance and the financial crisis at crypto bank Silvergate. Following the FUD situation, leading assets like Bitcoin and Ethereum dropped over 5% and now aim to break below their crucial support levels, which may soon lead to another correction in the market.
Moreover, there are several critical macro events that are going to keep the same pressure on the crypto market next week as investors are yet to gain enough confidence to buy in the dip.
PMI Data
Purchasing Managers’ Index (PMI) data is an important economic indicator that can provide valuable insights into the health of various industries, including the cryptocurrency market. The S&P Global Asia Sector PMI and S&P Global Dubai PMI are scheduled for the 6th and 9th of March, respectively.
PMI data can provide a graph of the health of the cryptocurrency market, including the level of institutional adoption, innovation and development, and regulatory uncertainty. As a result, positive data will significantly boost the market’s bullish potential next week.
Federal Reserve Meeting
Though the Fed meeting is set to take place on 22 March, it may build up bearish pressure in the market as the US Federal Reserve’s recent release of the minutes from its February 1st meeting suggests that more interest rate hikes are on the horizon. This could pose a significant challenge for the cryptocurrency market in the medium term.
More hikes in the interest rate in March will create a downturn for the crypto market, and Bitcoin may plunge below the $19K level, forcing several assets to drop significantly.
Bitcoin Difficulty Adjustment
The Bitcoin network undergoes a process called “hashrate adjustment” every two weeks, which helps maintain the network’s stability and security. This event could have an impact on the cryptocurrency market, as changes in the hashrate can affect the difficulty of mining and the overall supply and demand for Bitcoin.
As Bitcoin is currently experiencing a plunge, the increase in mining difficulty from 43.05T to 44.01T on 10 March will create a bearish scenario for Bitcoin, which will eventually reduce miners’ profitability and plunge multiple assets to their bottom levels.
Conclusion
The next week will be important for the cryptocurrency market, as several macro events are set to take place. As a result, investors should stay informed and remain vigilant about potential risks and opportunities in the market. With volatility expected to continue, it’s more important than ever to have a well-diversified portfolio and a long-term investment strategy.
Crypto Headwinds May Start to Pile Up- Markets May Soon Face Another Sell-off Soon!
The crypto space is falling down! Yes, you heard it right! The Bitcoin price was once again subjected to massive liquidations, resulting in a more than 5% drop in its price along with the other altcoins in the market. With this, the entire market cap collapsed to close to $1.03 trillion. While market participants believe the prevailing bearish trend may ease soon, triggering a rebound, it appears that the bears are here to stay!
The BTC price is consolidating along the lower gained levels from the past few hours and hence squashing the possibility of an immediate recovery. Therefore, the prices of the major cryptos are believed to remain under bearish influence for some more time ahead, as multiple events are about to mark their strong presence within the crypto space.
A popular analyst lists the probable events that may occur in the coming months. Apart from Silvergate, MT. Gox unblock is underway, while the Shanghai upgrade is expected to shake the market as the locked ETH may be withdrawn. As per the analyst, the CPI may soar high by 50bps while the stock markets may witness weakness. The analyst also specified that a combination of the above-mentioned events may trigger mass liquidations again.
The market participants were in extreme fear until the market rose at the beginning of 2023. However, after experiencing a small sigh of relief, the bearish cartel is believed to dominate, which may create another price depression within the markets.
Therefore, will Bitcoin form the bottom before the end of Q1 as predicted by some analysts before, or head back towards $25,000? We need to wait and watch.
Crypto News Today: Markets Remain Sluggish, This is When BTC, ETH May Make a Move Higher
Morning People: Here’s what happens in the Crypto-Space
Bitcoin price continues to remain more or less static, and hence, the entire crypto space is consolidating within a very narrow region. The popular tokens in the top 10 rankings, like Ethereum, Cardano, Ripple, etc, are trading within the same bracket.
Besides, the DeFi space is also tumbling down as bears are slowly regaining control over the market. Therefore, the markets may remain under the bearish influence throughout the day while the prices may drop off slightly.
The global market capitalization slumped by 0.71% and stands at around $1.07 trillion while the trading volume dropped by 2.57%.
Among the top cryptos, Bitcoin (BTC) price is trading at $23,451.51, Ethereum (ETH) price at $1,644.35, Binance Coin(BNB) at $299.10, Ripple (XRP) price at $0.3787, Cardano (ADA) price at $0.355, Dogecoin (DOGE) price at $0.8078, & Polygon (MATIC) price at $1.22.
Top DeFi tokens such as Avalanche (AVAX), Uniswap (UNI), Chainlink (LINK), and Lido DAO (LDO) are trading at $17.39, $6.74, $7.39, and $2.89, respectively. Besides NFTS, Apecoin (APE), Internet Computer (ICP), Stacks (STX), Flow (FLOW), & Decentraland (MANA) is trading at $5.00, $5.92, $0.933, $1.16, & $0.641 respectively.
Here’s the Market Overview for Today:
Besides this, some of the major updates in the crypto space are mentioned below :
Polygon unveils ‘Polygon ID’ ahead of zkEVM’s launch
Polygon ID is a web3 identity service that enables applications built on blockchain technology to validate user credentials within a secured environment. However, the ID could attract more benefits in compliance with KYC.
Chainlink launches a new platform
Chainlink, aiming to serve Web 2.0 developers, launches a new platform for them to get connected to the Web 3.0 platform. The new platform will allow customizable computations on Web 2.0 APIs very quickly.
US Treasury may soon look into Digital Dollar
The US treasury department will soon lead a working group to discuss on the future launch of the digital dollar.
Crypto Markets Live: Is a Bullish February Close an Indication of the Start of a Bull Run?
The crypto market is approaching yet another monthly close, which is largely expected to be bullish. The month of February has been bullish, recording huge gains regardless of the trend of the previous month. By registering two consecutive bullish monthly closes, it can be derived that the crypto markets may have risen beyond the bearish captivity.
But how long will the bullish trend continue? What if history repeats itself? Will the crypto markets again fall into a deep bear market?
The historical price action of the crypto space suggests that February has been a bullish month, recording an average gain of 187.83% since 2011 with an average of 12.52% per year. Excluding the 2018 bear market, where-in their action was witnessed in the first few weeks of 2018, the crypto markets recorded magnificent gains for the rest of the year.
Woefully, the markets have surged just 2.12% compared to the previous 39.83%, and hence the fear of a bearish close still haunts the token.
Referring to the above chart, it can be assumed that after February, April may incur equivalent or higher gains, as March may remain consolidated or bearish. Moreover, in the acute bearish case, the entire Q2 has been heavily bearish in the past couple of years. Therefore, it is very much important for the crypto space to remain bullish until the monthly close as a fine upswing could be ignited ahead.
Collectively, Bitcoin prices are becoming unpredictable day by day and the historic profit and loss chart above substantiates this claim. 2021 was marked as one of the bullish years but still, Q2 registered a massive price slash. Besides, March has been bearish for ages and a bearish close for February may fuel the bearish market sentiments.
Why is Bitcoin Price Down Today? Have the Bears Capitualted the Markets?
Bitcoin’s value dropped notably during the previous day’s close, hitting the intraday low of $23,000, incurring a loss of more than 3%. The drop was followed by a significant drop in the US markets as the Dow Jones Industrial Average plunged by 390 points and S&P500 & Nasdaq dropped by 1.6% and 2.0% respectively.
The price was fluttering around the crucial support level of $23,800 for a long time, and hence a giant action was expected, regardless of the direction. One of the prime reasons is assumed to be the release of monthly personal consumption expenditure, which rose by 0.6%, surpassing the forecast of 0.3%, fueling the heated inflation.
So what’s next? Will Bitcoin slide down below $22,000 or regain its strength to rise beyond $25,000?
The current trading setup displays the possibilities of a bull trap being accomplished successfully, but the possibility of a bullish reversal still looms.
The BTC price is trading within the rising wedge, and the recent pullback dragged the price to the lower support. The price is believed to hover around these levels for a while and bounce back above $25,000. However, this bullish attempt is expected to fail, and as a result, a massive bearish action may drag the price below $21,500.
Additionally, the RSI has been maintaining its trend within the upper bands, and despite a bearish outlook, it is displaying a bullish divergence. Therefore, the Bitcoin (BTC) price is expected to stay above $23,000 until the bulls accumulate some strength to trigger a rebound back toward the crucial resistance at $23,800. Clearing these levels may begin with a fine upswing toward the main target set at $25,000.
Why is Bitcoin Price Down Today? Have the Bears Capitualted the Markets?
Bitcoin’s value dropped notably during the previous day’s close, hitting the intraday low of $23,000, incurring a loss of more than 3%. The drop was followed by a significant drop in the US markets as the Dow Jones Industrial Average plunged by 390 points and S&P500 & Nasdaq dropped by 1.6% and 2.0% respectively.
The price was fluttering around the crucial support level of $23,800 for a long time, and hence a giant action was expected, regardless of the direction. One of the prime reasons is assumed to be the release of monthly personal consumption expenditure, which rose by 0.6%, surpassing the forecast of 0.3%, fueling the heated inflation.
So what’s next? Will Bitcoin slide down below $22,000 or regain its strength to rise beyond $25,000?
The current trading setup displays the possibilities of a bull trap being accomplished successfully, but the possibility of a bullish reversal still looms.
The BTC price is trading within the rising wedge, and the recent pullback dragged the price to the lower support. The price is believed to hover around these levels for a while and bounce back above $25,000. However, this bullish attempt is expected to fail, and as a result, a massive bearish action may drag the price below $21,500.
Additionally, the RSI has been maintaining its trend within the upper bands, and despite a bearish outlook, it is displaying a bullish divergence. Therefore, the Bitcoin (BTC) price is expected to stay above $23,000 until the bulls accumulate some strength to trigger a rebound back toward the crucial resistance at $23,800. Clearing these levels may begin with a fine upswing toward the main target set at $25,000.
PCE Data Shakes Up Crypto Markets: Here’s What You Should Know
The release of the Personal Consumption Expenditures (PCE) data on Friday night had a significant impact on the cryptocurrency market, causing a notable decline in prices.
The PCE data is well-known for capturing inflation and reflecting changes in consumer behavior, making it a crucial factor in the Federal Reserve’s decision-making process for setting interest rates.
Here is everything you need to know about the impact of the PCE data on the crypto markets.
Crypto Markets Respond to PCE Data Release
As expected, the release of the PCE data had a negative impact on the cryptocurrency market. In the 24 hours following the data release, Bitcoin slid 2.35% to $23,849, while Ether fell 1.02% to $1,652. The rest of the top 10 cryptocurrencies also fell on the day, with Polkadot’s Dot and Polygon’s Matic being the most significant losers, both falling over 3%.
Impact on Crypto Market Capitalization
The global cryptocurrency market capitalization decreased by 1.95% to $1.09 trillion in the 24 hours following the PCE data release. The total trading volume was down by 6.33% to $56.02 billion.
These figures indicate a significant negative impact of the PCE data on the crypto market.
The recent decline in the cryptocurrency market reinforces the argument that stocks and digital assets are becoming increasingly correlated, providing little diversification benefit. This means that traders who hold both stocks and cryptocurrencies in their portfolio are exposed to similar risks.
Bitcoin has been experiencing a pullback after failing to break above $25,200, an area that has acted as strong resistance in the past. While the recent pullback could be a temporary pause before the next leg higher, more technical evidence is needed to confirm that the worst in the crypto space is over and that Bitcoin could extend its near-term recovery.
At press time, Bitcoin is worth $23,889 and Ether is at $1,648.
Overall, the release of the PCE data had a significant impact on the cryptocurrency market, causing a decline in prices and market capitalization. The correlation between stocks and cryptocurrencies highlights the risks associated with holding both in a portfolio.
While Bitcoin and Ether may recover in the near future, it remains to be seen whether the worst is over for the crypto market.