The Cryptocurrencies rise on Wednesday, March 19. Bitcoin (BTC) It rises 1.4% in the last 24 hours, quoting around US $ 83,628.70, according to Binance. Meanwhile, the rest of the cryptocurrencies operate with a majority of increases of up to 5.5% of the hand of Ethereum which exceeds US $ 2,000, followed by Ripple (+3.3%).
Cryptocurrencies, risk assets and Fed: What expectation is in the short term
Joel Kruger, Lmax Group strategist, highlights that The uncertainty and volatility caused by the commercial policy of the president of the United States, Donald Trump, will continue to condition risk assets for the growing fear of a recession.
Abe point out that, in recent weeks, US actions and cryptocurrencies lost practically everything that achieved Trump’s victory in the November elections and his correlation narrowed even more. For example, The S&P 500, the largest stock market index in the world, has lost 10% since its historical maximum.
“When we consider the state of global commercial tensions and concerns about a deceleration in the US economy, at a time when The Federal Reserve Capacity (Fed) to offer more stimuli is increasingly uncertainthere are reasons to fear that actions can fall even more, “explains this expert.
This day the Fed culminates its last monetary policy meeting, a conclave in which the market does not expect any change in interest rates. Therefore, the focus is not put in the decision itself, but what the Central Bank has to say on the trajectory of inflation and the march of the US economy.
Bitcoin: Does a bearish rally start?
In this context, Ki Young Ju, founder of the research firm Cryptoquant, believes that The Bitcoin upward market came to an end and wait between 6 and 12 months of lateral movements or the loss. According to this expert, the market It needs “new liquidity”, since there are no new capital tickets.
“For example, the Blackrock Ibit Fund has registered three consecutive weeks of capital exits. Even with a record volume close to $ 100,000, the price of Bitcoin barely moved. Without new liquidity to counteract mass sales, this is a bearish signal,” explains this strategist.
In fact, the quoted funds (ETF) come from marking their Fifth consecutive week of net exits, with a negative flow of 870 millionwhich raises the total loss to More than US $ 5,000 million. Similarly, the ETFs in the ETH’s cash experienced exits of approximately 145 million last week.
Also, Cryptoquant predicts that Bitcoin could fall to US $ 63,000 In the coming weeks if the situation does not change drastically. According to the firm, the MVRV ratio, which compares the market value (MV) with its value made (RV), has fallen below its 365 -day mobile average indicates that the impulse of the BTC price has weakened, which historically has been aligned with deeper corrections or the start of bearish markets. Therefore, at this time the support presented by the queen cryptocurrency between $ 75,000 and the $ 78,000 is “critical”.
Source: Ambito
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