Source: Investment U
The recent declines across cryptocurrencies have made some analysts express their concerns about near-term price direction ahead of the U.S. Federal Reserve Open Market Committee (FOMC) meeting. Market participants expect the central bank to hasten the speed at which people acquire assets, which could make some investors reduce their exposure to speculative assets, including cryptocurrencies and equities.
Over the last 24 to 48 hours, Bitcoin, Ethereum and Solana have all experienced a decline which is evident across many other altcoins. See the latest prices of some of the investors’ assets;
- Bitcoin (BTC): $46,366, -7.79%
- Ether (ETH): $3,728, -10.09%
- S&P 500: $4,668, -0.91%
- Gold: $1,786, +0.21%
- 10-year Treasury yield closed at 1.41%
Technically, if the current support levels do not hold up, bitcoin’s price seems susceptible to a further breakdown.
In an email to Coindesk written by Alex Kuptsikevich, an analyst at FxPro, he said: “A significant short-term indicator for the market promises to be the 200-day average for bitcoin. An ability to bounce back above that line would indicate bullish sentiment prevails and promises new attempts to climb above $50K or $60K this month. A sharp fall would formally clear the way for a deeper correction to $41K or even $30K.”
The downturn in crypto markets led to a 52% drop in Inflows into Digital asset investment products. The inflows dropped from $184 million to $88 million within a week.
Funds into bitcoin, the largest cryptocurrency, made up the bulk of the inflows for the week at $52 million. The previous week, bitcoin funds had $145 million inflows while SOL, the token used for smart contracts platform, recorded inflows to the tune of $17 million.
Quick Roundup for Altcoins
- SUSHI gained 10% from $5.30 to $6.19 on Sunday night but dropped slightly after some traders took profits. The jump happened shortly after Daniele Sestagalli, a top app developer on blockchain Avalanche, proposed joining the platform on the project’s governance forum.
- Tezos launches on German exchange: An institutional-grade tezos exchange-traded product was recently launched by digital asset manager ETC Group on Europe’s Deutsche Börse XETRA under the ticker symbol EXTZ. The native token of the Tezos blockchain, XTZ, becomes available to 16 European countries as altcoin products continue to make a sweeping stake in the space.