The cryptocurrencies They plummet more than 24% in the last 24 hours led by the crypto memes Dogecoin and Shiba Inu and Ethereum up to 19%. In this way, Ethereum is trading at US$3,200 while Bitcoin loses 7% It operates at two-week lows but maintains its support zone above US$60,000.
“Higher-than-expected inflation figures in the United States have caused declines in the stock and cryptocurrency markets, with investors reflecting on whether inflation is still too high for the Federal Reserve to begin easing financial conditions,” it notes. Simon Peters, expert cryptoasset analyst at eToro.
What is expected for Bitcoin after the sharp falls?
“Although the The fall is large in dollar terms, it is perfectly normal to see declines of this percentage. Historically we have seen retracements or falls of up to 30% during bitcoin bull markets,” adds this expert.
“The question now is If the price has retreated enough for investors to buy the dip, or if the price action could extend its decline,” the eToro expert asks.
Cryptocurrencies: the key data that the market expects
Attention now turns to this week’s FOMC meeting, particularly the press conference with Federal Reserve Chair Jerome Powell on Wednesday, which could influence the direction of cryptocurrency markets in the near term. says Peters.
“Keeping rates higher for longer could be negative for asset prices, stocks and cryptocurrencies, and could deepen the price pullback seen last week,” Peters warns.
The Federal Reserve will conclude its final two-day monetary policy meeting on Wednesday. Everything indicates that the central bank will keep interest rates unchanged, although he will also hold a press conference to talk about the economy and where the Fed rates are headed going forward.
A aggressive tone would likely lead to risk aversion to the detriment of the most popular digital currency, while an indication of lower interest rates could make traditional investments such as bonds and savings accounts less attractive, leading investors to seek higher returns elsewhere. places, including Bitcoin.
Even so, the Bitcoin continues to post a 50% gain so far this year, as investors have piled into spot Bitcoin ETFs.
And the $150,000 level “now appears likely,” according to British bank Standard Chartered, reflecting “the fastest transfer of ETF inflows to the price of Bitcoin to date.”
Source: Ambito
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