The cryptocurrencies They continue to fall this Tuesday, April 25. Bitcoin falls 0.5% in the last 24 hours and stands slightly above $27,400, while Ethereum cuts almost 2% to $1,800. In the last week, the two largest cryptocurrencies in the market fell between 9% and 13% respectively.
“The momentum that was there a few weeks ago is not there anymore and traders are confused as to why the price has stalled at the $30,000 price level, which is not even significant resistance,” explains Naeem Asla. , chief investment officer at Zaye Capital Markets, on the reigning cryptocurrency.
According to this expert, Most believe the current price decline is because the Federal Reserve (Fed) has taken a tougher monetary policy stance, making digital currencies less attractive.
“The main price point that everyone will pay close attention to will be the $25,000 support level. Anything lower than this will bring more disappointment”, he adds.
James Harte, a market analyst at TickMill Group, makes the same case as expectations of rate hikes have led to a rally in the US dollar and bond yields. This is why he notes that traders appear to be favoring these lower-risk assets and have taken profits from the rally in cryptocurrencies, which “are likely to remain under pressure ahead of the FOMC meeting in May.”
“Looking ahead this week, macro data and US results will be the key factors for cryptocurrency traders to watch. Any weakness in US GDP could help ease expectations of tightening a bit, supporting ‘cryptos’. However, if GDP proves resilient, crypto assets will remain under pressure in the near term,” Harte explained.
Related to this, the figures from the big tech companies will be of great interest to the cryptocurrency market, as the correlation with the selective Nasdaq remains very high. This week, Amazon, Microsoft, Alphabet (Google) and Meta will confess to the markets, while next week it will be Apple’s turn. So far this year, bigtech has rebounded strongly after a very negative 2022.
In addition to the profit and sales figures, attention will fall on “the further possibility of further headcount reductions in an effort to boost margins,” while “any projected earnings outlook for these companies will come under particular scrutiny.” , as pointed out by Richard Hunter, director of markets at Interactive Investor.
Source: Ambito
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