At the same time, Cryptocurrency’s correlation with tech stocks rose sharply in the past week, making investors vulnerable to monetary policy tightening. The Federal Reserve could raise interest rates “significantly” to cool an overheated US economy, Goldman Sachs chief economist Jan Hatzius said recently.
With this panorama, several analysts already see the possibility that the downward path will continue and the next zone to look at is between US$38,000 and US$39,000. “I don’t even think we’ll see below $30,000, I’m more in favor of choppy price action in this range which is also hell. I just need bitcoin to cool down and let my altcoins run,” said analyst Michaël van of Poppe on his Twitter account.
The recent behavior of the crypto currency “would also mean a breakout of the 50 Fibonacci level from 2022 lows to highs, which could also be a negative sign“, comments Craig Erlam, an analyst at Oanda at Bolsamanía. “It will be interesting to see if these levels attract buyers, since the break two weeks ago and the yearly highs above $48,000 seemed to be a very bullish move. But since then everything has been downhill.”
In general, experts blame the correlation of digital currencies with stock markets investors seem to be reducing their exposure to speculative assets, including stocks and cryptocurrencies, amid concerns about inflation and slowing economic growth. .
Additionally, the 10-year US Treasury yield rose to a new three-year high on Monday at 2.78%, depressing the current value of tech stocks, which was noted on the Nasdaq, which was the worst of all three Wall Street indices on Monday, down more than 2%.
Experts stress that the general uncertainty overshadows other developments in the cryptocurrency market, such as purchases by the Luna Foundation Guard (LFG), which aims to hold a $10 billion bitcoin reserve to back its currency. stable USDT.
“Investors appear to have tightened their risk budget, which is typical in times of market turbulence. After all, global volatility has been compressed over the last 15 years of unprecedented monetary stimulus.”“, he concluded.
Source: Ambito
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