Bitcoin
What’s behind the crypto bloodbath?
Bitcoin fell slightly, many altcoins suffered huge losses, and the largest cryptocurrency continues to face rejections at the $70K level. While Bitcoin and Ethereum suffered losses of 5-7%, many altcoins lost double digits. BNB, Solana, and Dogecoin saw losses ranging from 12 to 15%. Shiba Inu, Avalanche, Polkadot, Chainlink and NEAR Protocol also suffered double-digit losses.
The Consumer Price Index (CPI) report is being released, which historically influences crypto markets. The anticipation of this report may be causing some hesitation in the market. The Federal Open Market Committee (FOMC) meeting is also taking place, where a summary of economic projections is discussed.
Although no rate changes are announced, this meeting still impacts market sentiment. Officials are expected to keep interest rates stable regardless. However, the new inflation numbers could influence your predictions about the number of rate cuts for the year, as policymakers may revise their predictions based on this data.
Despite the recession, institutions and companies are still interested in crypto, influenced by the success of Bitcoin spot ETFs. This interest extends to all major cryptocurrencies, including Ethereum and other blue chips.
What to expect from the price of Bitcoin?
When discussing the price of Bitcoin, analyst Crypto Rus noted that before Bitcoin rose from $1,000 to $20,000 in 2017, there was a period of instability and consolidation, similar to the current 15-week period. He suggested that once a breakout occurs, a significant upward move could occur, potentially reaching $300,000 to $400,000.
He said that although ETH recently fell from $3,900 to $3,500, it is forming a bull flag. With Ethereum ETFs on the horizon, significant investment is expected, which could drive ETH prices higher. The influx of liquidity will benefit not just ETH but the entire market.