In simple terms, the cryptocurrency market, primarily driven by Bitcoin (BTC) and Ethereum (ETH), followed the downward trend of major stock markets in Europe, Asia, and the US in the last 24 hours. Approximately $300 million was wiped out from the crypto derivatives market, mostly affecting long-term investors. The prices of Bitcoin and Ethereum also decreased by around 5% within this timeframe, trading at approximately $63,326 and $3,087 respectively.
In the past 24 hours, the Dow Jones Industrial Average, S&P 500, and NASDAQ Composite Index each experienced different decreases in the United States. The Dow Jones lost 0.65 percent, the S&P 500 dropped 1.2 percent, and the NASDAQ Composite Index gave up 1.79 percent.
In Europe, the FTSE 100, DAX, and CAC 40 indices each fell approximately 1.3 percent over the previous 24 hours. Meanwhile, the Nikkei 225, Asia Dow, and Hang Seng indices in Asia experienced declines of roughly 2 percent within the same timeframe.
The broad market decline can primarily be blamed on the impending crisis in the Middle East between Israel and its surrounding nations. Additionally, the continuing dispute between Russia and Ukraine has already restricted trade connections among major world powers.
Despite this, Michael Saylor, the founder and chairman of MicroStrategy Inc (NASDAQ: MSTR), has strongly emphasized once again that Bitcoin prosperishes during times of crisis.
Analysts Take on Bitcoin and Crypto Ahead of Halving Event 2024
Based on Markus Thielen’s perspective as the founder of 10x Research, many investors in Bitcoin ETFs have chosen to remain cautious and not jump into the market due to the ongoing correction. Additionally, the optimistic outlook caused by the potential for US interest rate reductions, a significant factor fueling recent bullish trends, is now being questioned.
Concern is rising among us that the values of risk assets, such as stocks and cryptocurrencies, could experience a substantial price drop. The main cause for this apprehension is the unexpected and prolonged inflation. Recently, the bond market has indicated fewer than three interest rate decreases, while 10-year Treasury Yields have exceeded 4.50%. This could mark a critical turning point for risk assets, according to Thielen’s assessment shared with clients on Tuesday.
After selling all their technology stocks on Tuesday, Thielen mentioned they now solely own cryptocurrencies with strong belief. The pessimistic view towards crypto assets arises due to intensified regulatory examination of altcoins by the US Securities and Exchange Commission (SEC).
Based on the US Securities and Exchange Commission’s (SEC) classification, a majority of alternative cryptocurrencies, including Ethereum and Ripple‘s XRP, are considered securities under American securities law.
Midterm Price Predictions
Over the past several weeks, Bitcoin’s price has fluctuated between $72,000 and $61,000. This volatility occurred even as Bitcoin gained ground against the alternative cryptocurrencies, increasing its market dominance.
#Bitcoin holding up on support here after a lower timeframe rejection.
Should we lose this, our income would amount to approximately $55,000. However, based on my assessment, it’s more probable that we will remain in this position and gradually move upward.
— Michaël van de Poppe (@CryptoMichNL) April 16, 2024
Based on the analysis of well-known cryptocurrency expert Michael van de Poppe, the Bitcoin price currently has a robust support point at approximately $61,441. It is crucial for buyers to hold this line and put in efforts to prevent a potential drop to around $55,000, which could signal a significant sell-off.
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2024-04-16 14:57