After a bearish week, the global cryptocurrency market continues to trade sideways today, sending Bitcoin below the $20k level and Ethereum below $1.1k. Stocks are having one of their worst years, with Tech Stocks showing significant bearish momentum in 2022. The good news is that the selloff has subsided this Friday as BTC remains above $19k, up 0.37% in the past 24 hours, and ETH managed to gain 1.61% remaining firmly above the $1k support level.
While no one can definitively say if the worst is over for markets, the sideways trading for major crypto assets like BTC and ETH since June 18th is a positive sign of a potential slow down of the selloff.
Source: CoinMarketCap
The past three months marked one of the worst quarters for Bitcoin’s price in almost ten years, signaling the sheer scale of the current bear market. Bitcoin dropped over 57% in the past three months, from a high of $46k to a low of $19k.
After hovering at the $30k price range for nearly a month, between May 12th and June 12th, another selloff ensued on June 13th, pushing the support level down to the $20k level.
While the current support in the $19-$20k range is holding firm if stocks continue to tumble, the U.S. economy continues to decline, and inflation continues to rise, it wouldn’t be surprising for BTC’s support to drop to the $15k range in the coming months.
Eventually, the bear market will end, and BTC, ETH, and the global cryptocurrency market will rebound, but no one can predict when that will happen.
Since Bitcoin’s price closely follows stock market price action, the key to cryptocurrency’s market recovery is for the stock bear market to end. According to a report from Yahoo Finance:
“Wall Street pros are looking for some very specific factors to see if they signal that the brutal bear market for stocks is nearing an end. Chief among them is cooling inflation, which could then imply a halt in stock market damaging interest rate hikes from the Federal Reserve.”
The primary metric that could signal cooling inflation in the U.S. is the Consumer Price Index (CPI) numbers, which are set to release on July 13th and provide the latest numbers for June.
In June’s report for May, the Consumer Price Index showed an 8.6% increase from a year ago, which marked the highest increase since December 1981. The report indicated numbers higher than expected, which amplified the stock bear market.
Suppose the CPI numbers show a decline in inflation for June. In that case, that will incentivize the Federal Reserve to slow down on the interest rate hikes and provide an opportunity for stock markets to rebound from the long and painful bear market.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any projects.
Follow us on Twitter @themerklehash to stay updated with the latest Crypto, NFT, AI, Cybersecurity, and Metaverse news!
Image Source: slavstan/123RF
Core Foundation has just announced a new partnership with Z Protocol, and it’s already getting…
Binance Wallet is quietly stepping into one of crypto’s fastest-growing sectors, prediction markets. According to…
As concerns around quantum computing and crypto security continue to build, Changpeng Zhao is stepping…
Bitmine Immersion Technologies, led by Tom Lee, is continuing to build aggressively on its Ethereum…
Something interesting just played out within the Ethereum space, and it didn’t take long before…
It’s becoming more obvious by the day that Ethereum is not slowing down anytime soon,…