Get exclusive reports and access key insights on airdrops, NFTs, and more! Subscribe to Alpha Report now and get ahead of the game!
Go to alpha report
Bitcoin and Ethereum After opening yesterday morning nearly 10% lower than Tuesday, it has rebounded.
At the time of writing, Bitcoin price is around $57,700, having recovered 0.5% in the past 24 hours. And Ethereum's price is currently trading just below $3,000 after rising 2.3% over the past day, according to data from CoinGecko.
However, the damage still remains. According to CoinGlass, an additional $193 million worth of crypto futures contracts were liquidated in the past 24 hours, adding to the $300 million worth of liquidations confirmed earlier this week.
Economist and trader Alex Krueger says the current cycle feels very different for traders, driven largely by interest in Spot Bitcoin ETFs, which only began trading in January. He explained.
“New retail entry into cryptocurrencies is rare,” he wrote. twitter. “Primarily ETF buyers and previous cycle participants are redeploying and moving out of the risk curve.”
Analysts have largely attributed the collapse in crypto prices to market unease among investors over confidence that the Federal Open Market Committee, which sets monetary policy and controls federal interest rates, will not cut interest rates. The Fed then did exactly what most investors thought it would: keep interest rates on hold and let cryptocurrencies trade sideways.
Some thoughts on the current cryptocurrency cycle
#1 The crypto cycle has been driven almost entirely by Bitcoin ETFs.
#2 ETH was a big disappointment, but overall performed well for stakers and airdrop farmers.
#3 Solana has established itself as the chain of choice for customers…
Federal Reserve Chairman Jerome Powell said at a press conference yesterday that the fight to raise inflation to 2% has been difficult, but added, “The next move in interest rates is unlikely to be a rate hike.'' ” he added.
“I'd say it's unlikely,” he said, but added: “It's likely to take longer before we can be confident we're on a sustainable path to 2% inflation.” I warned you.
But even President Joe Biden is optimistic the Fed will cut rates before the end of the year. “I stand by my expectation that there will be a rate cut before the end of this year,” he said at a press conference in Japan last month. “This could delay it by a month or so, but we don't know about that.”
He was referring to the better-than-expected March inflation report that had just been released at the time.
Stay on top of cryptocurrency news and get daily updates in your inbox.
