The cryptocurrency market returns to green, despite the falls on Wall Street and the tightening of the monetary policy of the central banks, which has been evident after the Super Thursday of the Bank of England, which raised rates and reduced purchases, and the European Central Bank.
The impact of the central bank pivot “on broader risk appetite is probably the most damaging aspect,” says Craig Erlam, an analyst at Oanda, “having retreated from $40,000 on Wednesday, where it briefly threatened to revert to upload earlier this week.” “We could see how it consolidates in this area in the short term, and a significant break of the 30,000 dollars could trigger another aggressive downward movement”, rounds off the expert, according to reports Bolsamania.
The digital currency hit a low since January 25 at $36,800 and pundits are beginning to wonder if the chances of it hitting the $40,000 target are nothing more than wishful thinking.
Bitcoin’s bounce was encouraging over the past week, but it has so far failed to recapture this important resistance, “which may cause some discomfort among those hoping the bottom is behind us,” said Craig Erlam, an analyst at Oanda on Bolsamnía. “Improving risk appetite in the broader markets is naturally supportive of price and could ultimately be what gets it through this important resistance level, as long as it holds.“, he added but pointed out that “we are seeing profit taking that is contributing to short-term declines.”
Experts warn that the decisions of the central banks this Thursday will mark the compass of crypto assets since “Bitcoin will continue to be listed as a risky asset and will probably benefit if they continue to show some reluctance when it comes to tightening their monetary policy” explained Edward Moya, an analyst at Oanda. In this sense, the expert believes that the Bank of England and the European Central Bank could have a greater than normal impact on cryptocurrencies, “since Wall Street is looking for a signal about the direction in which the appetite for crypto is headed. risk”.
The Federal Reserve (Fed) signaled the possibility of multiple rate hikes this year. This caused risky assets such as highly valued tech stocks and most cryptocurrencies to suffer heavy sell-off.
Source: Ambito
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