Bitcoin continues its third bearish week
Bitcoin’s price fell to $38,796 at 12:14 p.m. (Asian time), its lowest level since March 15. It has struggled to recover since hitting an intraday low and is presently trading at $38,799.
The flagship cryptocurrency hit a yearly high of $48,234 on March 28. The cryptocurrency market has been under pressure as the Federal Reserve of the United States tightens its monetary policy at a fast pace to fight inflation.
Peter Brandt, a well-known trader, recently forecasted that the price of Bitcoin will continue to trade sideways for years before beginning a massive climb in 2024. According to the Crypto Fear and Greed Index, Bitcoin traders are still experiencing “extreme fear.”
When it comes to altcoins, the majority of them have underperformed in the previous 24 hours, which is usual during market declines. Over the last 24 hours, Avalanche (AVAX), Cardano (ADA), and Terra (LUNA) have all lost more than 6% of their value. Decred (DCR) is one of the few top 100 cryptocurrencies to be in the green, with a gain of over 28%.
According to Jan Happel and Yann Allemann of Glassnode’s newest newsletter, Bitcoin’s connection to risk-on assets remains high, implying that a correction in the US stock market will certainly drive down BTC as well.
“Our analysis continues to suggest that this renewed sensitivity to market risks and a higher likelihood of stronger drawdowns has not been due to a lack of confidence in [BTC] but rather due to a charged macroeconomic environment.”
The macroeconomic picture appears uncertain, according to the Glassnode co-founders, after the Federal Reserve announced a $95 billion per month taper of its balance sheet in a bid to curb ongoing inflation. They also raise the possibility that Russia’s military aggression will spread and attack European Union territories.
Glassnode officials claim that over $100 million streamed out of the crypto markets last week as a result of the dangerous atmosphere, with BTC bearing the brunt of the outflows.
“Zooming into the crypto space, last week saw $134 million in fund outflows, marking the second-highest weekly outflows in 2022. Solana received $3.7 million in inflows, and altcoins (multi-asset) recorded $5 million in inflows, while a massive $131 million flowed out of Bitcoin.”
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