As Cardano, Dogecoin and Shiba Inu have met the same fate, with the total value of the market falling by around $400 billion to $1.61 trillion, with some calls by analysts to buy dips to pocket some bargains, while other voices warn that the imminent meeting of the US Federal Reserve (Fed) may trigger more risk aversion and further declines in technology stocks on Wall Street.
“The Fed is worried about inflation, because the White House is too. The Fed is going to make it clear, even if it doesn’t move this month”, Rabobank experts warn. These analysts add that, given the predictions of various rate hikes this year, “they will not address the underlying problems of the supply chain at all; but, from what has been seen in the past, they will probably bring down almost everything else. Cryptocurrencies and the Nasdaq (-12% YTD) are just a warning.”
As for the rest of the reasons to explain what happened, on the one hand, the balance of the flows of the Bitcoin trading platforms can offer a better snapshot. Between January 20 and January 21, 2022, there was a spike in cryptocurrency inflows, suggesting that people were selling their assets. However, departures followed.
Later, the balance of exchange flows again showed slight inflows. However, it is worth noting that recent outflows were nowhere near the levels seen around Jan 11, 2022. This is a sign that investors remain cautious.
Investors called to buy the dip well before the lowest price point. Now the metrics seem to suggest that investors are becoming more cautious.. Despite the extreme levels of fear in the market, not many are acting greedy in anticipation of numerous regulatory developments in the making in the US and Russia, Rabobank analysts point out.
Source From: Ambito
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