The cryptocurrency market went through a rather difficult week, after falls of more than 5% in a large part of crypto assets. Bitcoin has traded below $40,000 again and the alarms are going off, are we experiencing a crypto winter?
It seems that the decisions regarding monetary policy, in terms of other macroeconomic factors, have dealt a heavy blow to the financial markets, including cryptocurrencies, since a week has been consolidated that weakens the bullish sentiment among investors. Bitcoin has fallen below $40,000, a vital support level to determine the short-term future of the asset. Likewise, Ethereum is trading below $3,000 again and Cardano is trading below the dollar again.
The Federal Reserve’s position regarding its decision-making towards its monetary policy will continue, qualifying the interest rate hike as a “primary” issue, thanks to the high levels of inflation, which are close to 7.9%. , being the highest level in the last 40 years. It should be noted that the dollar is at its highest levels since May 2020, as a result of the first hike by the Federal Reserve this year.
This has kept investors away from high-risk and volatile assets, generating liquidations of more than 440 million dollars in the cryptocurrency market, within which more than 150 belonged to Bitcoin, while around 100 million were in Ethereum. The fear and greed index has reflected this sentiment, as it has crossed the neutral line again to find us in a “fear” situation.
However, the analysis firm Glassnode has reported through its latest “Week-On Chain” report that 75% of investors who own Bitcoin are in the green, that is, in the profit zone having acquired their bitcoins. crypto assets at lower prices than the current ones.
Bitcoin is hovering around $39,300, after breaching the $40,000 support. We could see a move lower to $36,500, fueled by bearish investor sentiment in volatile markets. However, the volume in crypto assets has increased almost 30% in the last 24 hours, approaching $63.41 billion.
BTC/USDT 1D (TradingView Chart).
For its part, Ethereum is trading near $2,925, approaching a very interesting support zone at $2,800. However, if a positive correlation with Bitcoin continues, it could break that support to continue to close to $2,720.
ETH/USDT 1D (TradingView Chart).
It has been quite a tough day for cryptocurrencies, driven by speculation and uncertainty of economic events that are just around the corner. However, as mentioned above, mass acceptance and implementation continues, and it seems to be an interesting time to analyze assets that generate value in the future, looking for the best opportunities. Without further ado, we wish you an amazing week.
