The cryptocurrency market has experienced very high volatility in recent days, the sell-off has sparked concerns over the risk of recession and galloping inflation. These factors made the stock indices dive again, dragging the cryptocurrency market with them. One can see that the correlation of Bitcoin with the NASDAQ technological index is still strong, which was not the case in the previous cryptocurrency boom cycles.
- The FED conference caused a short-lived euphoria among investors. Bitcoin’s bulls attempted to break above the resistance at $ 40,000, however upward move turned out to be short lived and price dropped by nearly 10%;.
- According to CoinMarketCap data, nearly $ 130 billion has been removed from the cryptocurrency market in the last 24 hours. Companies from the cryptocurrency industry, such as Coinbase, Riot Blockchain or Marathon Digital recorded 10.0% declines;.
- Viay Ayvar, president of the Luno cryptocurrency exchange, told CNBC that Bitcoin has lost its ‘key level’ at $37,500, which may push the price towards $25,000 within the next few days. Ayvar also suggested that only a dynamic upward move above $42,000 could negate the bearish scenario;.
- Looking at the current condition of the US indices, such a move would only be possible if we saw a very dynamic rebound of the NASDAQ index, which lost over 5% during the last session;.
- Algorand has become one of the sponsors of the FIFA World Cup. However, this information turned out to have little impact on the altcoin price, which proves the extremely negative sentiment around the market. Such information at the peak of the bull market could cause increases of several dozen percent;.
- Some analysts forecast that the cryptocurrency market will resume upward movement in the face of rising inflation and the collapse of fiat currencies. However recent price movements of major cryptocurrencies do not confirm this argument. Bitcoin is already trading almost 60% below its all-time high from 2021, while the vast majority of altcoins recorded even more drastic declines;.
- Cathie Wood, CEO of ArkInvest, and Artur Hayes, former CEO of BitMEX, expect Bitcoin’s price to rise to $ 1,000,000 by 2030. The growth would be driven by the decreasing desire to sell Bitcoins by long-term owners, growing interest from institutions, inflation and the potential adoption of BTC by other countries. It is worth adding, however, that both ArkInvest and BitMEX are directly related to the cryptocurrency market and it is in their interest to maintain a positive sentiment around the industry;
- Hayes also pointed out that in the face of a recession scenario, the cryptocurrency market has no reason to increase and may continue selling;.
- The Central African Republic has adopted Bitcoin as fully fledged tender, which was criticized by the International Monetary Fund, which pointed to “the high risks associated with the use of bitcoin in terms of financial stability, financial integrity and consumer protection, and related fiscal contingent liabilities”;.
- El Salvador, which eagerly informed during the boom about the adoption of Bitcoin and the creation of a cryptocurrency fund indefinitely, postponed the issuance of BTC bonds worth $ 1 billion. Finance Minister Alejandro Zelaya made the issue dependent on the market situation. El Salvador’s decision has also been criticized by the International Monetary Fund;.
- One of the largest Bitcoin holders, MicroStrategy, reported that it was ‘defending’ the price of Bitcoin against drops below $ 21,000. Bitcoin accumulation is continued by the Luna Foundation, which has recently become the second largest Bitcoin holder with a balance currently amounting to 39,898 BTC. Ultimately, the foundation wants to collect USD 10 billion in Bitcoin.
Bitcoin, W1 interval. Bitcoin fell sharply from it’s all-time highs around $69000 and recently broke broke key support around $37500. If current sentiment prevails , downward move may accelerate towards support around $ 29,000, which coincides with the 61.8 Fibonacci retracement of the recent upward wave. The nearest major resistance is located around $ 43,000 area and is marked with 38.2 Fibonacci retracement. Source: xStation5