The decline in indices continues to hurt cryptocurrencies
Over the past week, Bitcoin has fallen in price against the US dollar by 11.52%, to $34,038. Over the weekend, the cryptocurrency market remained under pressure. The decline in stock indices and risk aversion continued to hurt the cryptocurrency market.
On Monday, sellers rewrote the minimum by $30,033. The price per day collapsed by 11.64%. The dollar index has made a new high, while futures on the S&P500 and Nasdaq have made new lows. Tech stocks took the brunt, sending the Nasdaq down 4.3%. The S&P500 fell 3.20%.
Growing inflation, the military conflict in Ukraine, the tightening of quarantine due to COVID-19 in Beijing and Shanghai, as well as the tightening of monetary policy in the United States and the increase in yields on treasuries, are forcing investors to sell risky assets.
On Tuesday, May 10, during the Asian session, the bitcoin rate fell to $29,730. According to Coinglass, $261.6 million worth of BTC longs were liquidated on Monday. Total crypto losses from forced liquidations amounted to $1.05 billion. Most liquids worked on Okex.
The price dived below the $30,000 level following stock index futures. The $29,000-$30,000 zone is new support. Since crypto belongs to the class of risky assets, if bearish sentiment persists in all markets, it is highly likely to go to the level of $20,000.
After the breakdown of the $35,000 level, crypto winter came for me. Each has its own parameters for determining the phases of the market. Given the close relationship between crypto and indices, we can assume that the winter could be harsh. Despite the S&P500 falling 17.5%, it still has room for a 10-15% correction. This is enough for the cue ball to crash to 20k on liquidations. And what is happening in the world right now (inflation, hostilities in different parts of the world, high energy prices, reduction of balances by world central banks, intimidation of earthlings with hunger due to a failure in grain supplies from Russia and Ukraine, lockdowns in China, draining American bonds, revision of the share of the dollar in the reserves of central banks), I start to look at the level of $ 8,000 per cue ball. A close above $41,500 is needed to change bearish sentiment.
It was necessary to go to the ruble). Due to administrative measures, it turned out to be a treadmill among risky assets. artificial shelter.
Investors are now focusing on two inflationary reports: reports with data on consumer and producer prices in the US for April. Inflation is expected to fall. If investors are satisfied with the April values for prices, then we can see a rebound in all risky assets (currencies, metals, stocks, crypto).