The story of the BTC is developing in not the best way. However, the correctional bounce that we could see from Friday to Sunday gave some hope for acquiring balance. Today the leading cryptocurrency is near $29,706, while the low of May is set at $25,401.
So, the BTC has returned to the important level of $29,000-$30,000, but the solidity of the borders of this range is not that important. There is still a chance of falling to $20,000, though this might happen not that soon.
On the other hand, the buyers still can tread on outer signals and reach the first goal of growth – $35,250, hitting $38,200 as the next step. Higher goals are not detected yet, because the risk that the bears will return is too high.
Fundamental analysis shows that this week, moods in the BTC can change dramatically. For Tuesday, a speech by the head of the Fed Jerome Powell is scheduled. If he says that in the two next sessions the Fed will lift the interest rate by 50 basis points, as announced previously, stock market indices might correct. In crypto, the same will happen: between the dynamics of the S&P 500, Nasdaq, and the BTC certain correlation exists.
As you remember, certain investors are waiting for the growth of the rate by 75 basis points at the two nearest meetings of the Federal Reserve System. This strategy is rather aggressive. If these expectations do not prove true, this will be good news for both capital markets and the crypto sector.
Circle: USDC is fully backed by dollar
The Circle company announced that its stablecoin USDC was fully backed by the USD and treasury bonds. Currently, there are 50.6 billion coins in circulation, and only 8.4 billion of them were issued last week. It is known that 22.9% of them are supported by the dollar and the remaining 77.1% – by treasury bonds with up to three months expiry dates.
USDT: instructive story
What happened to the USDT stablecoin last week will change the market attitude to stablecoins and will return investors the understanding of risks around this type of investment. The token holds third place (after the BTC and ETH) in the rating of cryptocurrencies in terms of trade volumes and popularity. That is why the market is looking so closely at what is going on.
Source: Roboforex
