Bitcoin falls to US$65,000 due to expectations of a tough Fed and less optimism due to the halving

Bitcoin falls to US,000 due to expectations of a tough Fed and less optimism due to the halving

Cryptocurrencies step on the brakes and Ethereum rises 0.4% and remains at $3,300.

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The cryptocurrencies They hit the brakes. Bitcoin rises 0.9% in the last 24 hours and remains at US$65,000. Ethereum rises 0.4% and remains at US$3,300. Meanwhile, in relation to the 10 main cryptocurrencies, Solana (SOL) stands out with a rise of more than 5%.

Likewise, Coinglass data shows that More than $245 million in long positions have been liquidated in the last 24 hours, with $60 million in BTC positions. “Institutions and whales are believed to have purchased more than 12,000 bitcoins, most of which were on Coinbase and Kraken, and then They have been transferred to private wallets. It is also believed that Small investors continue to take advantage of every rise to take profits, while the rich buy every fallwhich explains the recent price volatility and instability,” explains Rania Gule, market analyst at XS.com.

Cryptocurrencies: what are the reasons for the falls

Analysts point out that the rebound in 10-year US Treasury bond up to 4.4%, high of the last two weeks, as well as the recent all-time highs of gold have significantly reduced investors’ risk appetite. The motives? A fairly sticky inflation and macroeconomic data showing that the economy is resilient, as shown by the US manufacturing PMI data, which was better than expected by registering its first expansion since September 2022.

These factors have pushed investors to believe that the Federal Reserve (Fed) will not be as ambitious in its interest rate cut program as previously thought. In this sense, Loretta Mester, president of the Cleveland Fed, has pointed out, who has acknowledged that she does not expect there to be declines in the meeting that the US central bank will hold between April 30 and May 1. “The actual path of policy will depend on how the economy actually evolves,” she has warned.

bitcoin cryptocurrencies

More than $245 million in long positions were liquidated in the last 24 hours

More than $245 million in long positions were liquidated in the last 24 hours

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On the other hand, Ángel Luis Quesada, CEO and co-founder of Onyze, points out that the “main factor” that can cause a change in trend in the price of bitcoin are the exchange traded funds (US cash ETF). “Specifically, when the volume of daily income they receive begins to decrease,” he points out. And it could be happening already.

According to the latest CoinShares report, cryptocurrency investment products They recorded inflows of just over $860 million in the last week after experiencing outflows of $900 million in the previous week. “While this recovery is encouraging, ETF activity is slowing, with daily trading volume at $5.4 billion, down 36% from the peak reached three weeks ago, although still well above the average. 347 million dollars in 2023, which implies that the initial market expectation is cooling,” these analysts say.

Cryptocurrencies: what role does the halving have in the price

On the other hand, optimism regarding fourth halving seems to be dissipating. The process, which halves the bitcoin network’s rewards, has historically coincided with bullish cycles for the queen cryptocurrency, although this time experts believe it may be quite discounted.

“It is possible that this halving in issuance of new bitcoins It will have a smaller impact on the market than on previous occasions, but what is certain is that its effect will not go unnoticed by investors. On the other hand, in the medium term, we also foresee that there may be a correction in the coming months, as is usually the case in all markets when investors give way to liquidate their profits; thus reducing demand levels and increasing the volume of supply of these assets in the market,” says Quesada.

Source: Ambito

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