Bitcoin (BTC) faces an uphill battle at the start of the week as it tries to recover from a 15% price drop.
Following a destructive weekend for crypto, traders are recovering from their losses — yet Bitcoin is showing signs of rebounding.
This week, awareness of global politics is crucial, as some analysts draw parallels between current developments in the Middle East and the market upheaval caused by the COVID-19 pandemic in March 2020.
Thus far, the prices of alternative cryptocurrencies have been significantly impacted by the sudden market fluctuations following tensions between Israel and Iran, while Bitcoin’s price against the US Dollar has remained above the $60,000 mark.
Despite this, Leverage experienced a significant and all-encompassing withdrawal, with approximately 30% of the open positions on Bitcoin vanishing unexpectedly.
Moving ahead, we have many challenges to face. The price fluctuations are quite noticeable now, but Bitcoin is on the verge of undergoing another block reward reduction in a few days.
The situation is now primed for unpredictable events, as the price movements of Bitcoin grow increasingly exciting and unmonotonic.
In simpler terms, CryptoMoon examines the latest developments affecting Bitcoin and cryptocurrency market prices in its weekly report, highlighting significant factors that could influence Bitcoin’s value.
Bitcoin bulls bounce back after flash crash to $61,000
It can be safely said that this weekend produced a crypto market nightmare unlike many seen before.
When new tension flared up in the Middle East’s geopolitical scene, cryptocurrency markets experienced an instant dip due to their constant availability for trading around the clock.
Just like what happened in Ukraine during the first part of 2022, Bitcoin and other cryptocurrencies experienced sharp price drops. The value of Bitcoin dipped below $61,000 against the US dollar.
The performance of altcoins was significantly poorer than Bitcoin, with some coins experiencing a 50% decrease in value before joining Bitcoin in a gradual recovery against the US Dollar. According to CryptoMoon’s latest report, Bitcoin’s dominance within the overall crypto market capitalization reached its highest point in the past three years last week.
In retrospect, well-known analyst Matthew Hyland pointed out that there had been indications of a sudden market correction before the extensive moves took many people unawares.
In summary, Bitcoin is generally holding steady near its all-time highs. On the other hand, Altcoins have experienced a correction, which may have been necessary to eliminate excess leverage and weak investors.
Examining the present order book information on Binance, the well-known trader and analyst Credible Crypto noticed changes in the amount of buy and sell orders being added and removed.
“Spot still trading at a premium- everything else still looking very healthy,” he summarized.
According to data compiled from monitoring platform CoinGlass, the aggregate liquidity level across exchanges displayed the largest ask cluster at a price point of $68,500 as of April 15th.
“According to trader Jelle’s assessment, Bitcoin’s value has not dropped below its past peak prices when looking at monthly closures.”
“Everything is going to be okay.”
The most recent closing price for BTC/USD at approximately $65,750, according to information from CryptoMoon Markets Pro and TradingView, was the pair’s lowest since early March.
Middle East jitters combine with fresh Fed comments
Over the next seven days, we have a standard mix of significant economic data releases and remarks from prominent Federal Reserve members, including Chairman Jerome Powell.
The normal situation is made more tense by developments in the Middle East, increasing the vulnerability of cautious investments to further uncertainty.
“In a short time, we will observe the market’s reaction to geopolitical tensions over the weekend,” The Kobeissi Letter stated in its weekly diary entry on X.)
The weekly jobs report, which includes unemployment claims, is set to be released on April 18. Meanwhile, Federal Reserve Chairman Jerome Powell is scheduled to deliver a speech on April 16.
Traders keep a close eye on inflation as they continually adjust their expectations for earlier interest rate decreases this year, instead of the later ones previously anticipated.
According to CME Group’s most recent projections, there is approximately a 43% chance that the Federal Reserve will reduce interest rates by a quarter point during their July meeting. The likelihood of this occurring at the September meeting is slightly higher, sitting at around 45%.
In simple terms, financial expert Tedtalksmacro advised his X subscribers last week that due to the current market reaction to interest rates, any unexpected drop in data leading to a revision of rate expectations is an opportunity for investment.
“Fiscal spending is the greater power here.”
Halving week dawns with focus on price volatility
The unpredictable price swings in the financial markets over the weekend have come very close to stealing the limelight from Bitcoin’s upcoming block reward reduction, which was set to occur.
As the clock ticks down to just four days left, traders are more preoccupied with monitoring prices instead of the highly anticipated networking event that has actually been in the works for several months.
Miners play a pivotal role in the ever-evolving landscape, experiencing immediate adjustments to their income sources as the reward for mining a new block of bitcoins decreases from 6.25 to 3.125 coins.
As CryptoMoon recently reported, research sees miners upping selling pressure around the event.
Despite the new information from Glassnode’s on-chain analysis, the amount of Bitcoin in miners’ recognized wallets has remained relatively stable since late March.
In simpler terms, the income we’re bringing in, which includes fees, has remained relatively consistent. Notable increases, or “spikes,” have emerged during this latest bitcoin halving event, primarily due to the surge of Ordinals in late 2023.
CryptoMoon provides a specialized platform with up-to-date news and insights on significant occurrences relating to the block reward reduction event.
Hong Kong reportedly approves spot Bitcoin, Ether ETFs
The reaction of U.S. Bitcoin ETFs to last weekend’s market volatility is yet uncertain. However, positive developments kick off the week in other parts.
According to reports, regulators in Hong Kong have given the green light for trading Bitcoin and Ethereum (ETH) Exchange-Traded Funds (ETFs). This news has left onlookers eagerly anticipating potential Chinese involvement in the future.
“WhalePanda commented with an ‘X’ reaction that China can gain simpler access to more Exchange-Traded Funds (ETFs) via Hong Kong.”
“Very bullish.”
According to reports, operators such as China Asset Management, Harvest Global Investments, and Bosera Asset Management are set to introduce spot crypto products.
“According to a recent announcement on social media, China Asset Management (Hong Kong) has been given the green light from the Hong Kong Securities and Futures Commission to manage digital assets for investors.”
“It now plans to issue ETF products that can invest in spot Bitcoin and spot Ethereum.”
At the moment, American exchange-traded funds (ETFs) related to Bitcoin are experiencing a decrease in new investments following a significant surge in March due to Bitcoin’s price reaching an all-time high.
Despite facing strong competition, US-made ETFs continue to reign supreme as the most prosperous launches in the history of this investment vehicle. BlackRock and Fidelity Investments’ two largest offerings have experienced daily net inflows since their introduction.
Crypto “greed” still reigns supreme
In a warning to those anticipating a prolonged increase in cryptocurrency prices, the general feeling is strongly optimistic or greedy.
Based on current information from the trusted Crypto Fear & Greed Index, the recent market downturn over the weekend did not cause major fear or hesitation among investors.
The level of fear and greed has decreased to 72 out of 100, which is the lowest it has been in about ten days. However, this isn’t indicative of a complete surrender or panic in the market.
On April 15th, as I pen this down, the Index has bounced back and is climbing up once more, reaching a level of 74 out of 100 that approaches the “greed” threshold.
On April 15, WhalePanda’s responses in a survey conducted among market observers indicated a sense of uncertainty regarding BTC/USD prices before the upcoming halving event. The survey results revealed a divided opinion among respondents, with a slight majority anticipating that Bitcoin would reach $70,000 by the following weekend.
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2024-04-15 11:28