The BTC is having tough times right now. On Wednesday, the major cryptocurrency is trading at $38,945 and trying to recover after plummeting the day before. Despite the local correction, bears are still dominating.
The technical picture tells us to continue monitoring $37,000 – bears will concentrate all forces on breaking it. The chances for serious growth are slim to none.
All these negative vibes come from what is currently happening in the US stock market. There is a strong correlation between the BTC and the US indices, such as NASDAQ and S&P 500, which are now also having hard times. Investors are expecting an aggressive rate hike, 50 basis points or even more, by the US Fed during its meeting that is scheduled for the next week. The rate hike will raise the loan pricing in the country and many companies and corporations don’t like it. Market players are selling, and this is just getting worse and worse. The crypto market is declining after the stocks.
There is an opinion that bears might become less active in the days prior to the Fed’s meeting and all investors will “hibernate”. For the crypto market, this is also an opportunity to take a break from selling.
ETH might be even cheaper
In the ETH, the mid-term trading channel remains descending. Given today’s price of $2,876, the closest downside target might be at $2,618-$2,747D. The fundamental background for the ETH is still strong but technical pressure and bearish sentiment are now stronger.
The ETH has already dropped 24% of April highs.
DOGECOIN: Musk provided support
The meme altcoin DOGE rate has leaped up almost 33% this week, to $0.17 following the news about Elon Musk’s acquiring Twitter. Musk is a fan of DOGE and often mentions the coin in his tweets. The coin has reached stability at $0.14 today but remains quite volatile.
SkyBridge: cryptos’ potential is huge
SkyBridge Capital intends to convert the major part of its assets into cryptocurrencies because the hedge fund sees great potential in the sector. The fund is currently managing assets worth $3.5 billion and its portfolio includes such digital assets as BTC, ETH, Algorand, and others. The management is confident that focusing on cryptocurrencies will allow to increase the capital to $10 billion. The company believes that the crypto market trajectory will be quite attractive within the next 3-5 years.