Crypto Mid-Week Sell-off: Will Assets Recover?

by

The value of crypto assets has decreased today, with some experiencing losses even beyond their weekly progressions. This trend may be influenced by broader economic indicators that are affecting investor confidence. A look at cryptocurrency price graphs reveals daily setbacks for the majority of leading assets and memecoins.

The number one cryptocurrency, Bitcoin (BTC), has dropped 2.55%, causing its weekly growth to decrease to 3.46%. On the other hand, Ethereum (ETH) has lost 3.5% today but managed to gain 4.8% over the past week. The trading activity for these leading assets has significantly decreased in the last 24 hours, suggesting a decline in investor sentiment and interest.

Crypto Mid-Week Sell-off: Will Assets Recover?

After experiencing a significant drop in value, Bitcoin bounced back and surpassed the $70,000 mark once again, sparking excitement about potential price increases prior to the upcoming halving event. Currently, Bitcoin is priced at $68,789, just below its resistance level. Bulls are optimistic about an upward trend. However, some short traders are skeptical, citing factors such as recent ETF inflows as reasons why Bitcoin’s performance may not mirror past halving events.

Altcoins In Liquidation Boat 

Ethereum jumped past $3,500 in its recent bounce back and reached that level. Currently, Ethereum is being traded at $3,520. However, the trading volume for Ethereum decreased by 14% today. Despite the drop in volume, wealth managers and traders remain optimistic about Ethereum’s future due to its staking capability and upcoming US-listed spot ETF.

In the past 24 hours, the value of cryptocurrencies such as Solana (SOL) and Cardano (ADA) has dropped by 3.3% and 4.5%, respectively. This decline has contributed to a decrease in the total value of the crypto market, which now stands at approximately $2.58 trillion – a drop of 2.3%.

Will Crypto Assets Recover? 

Some parts of the market are experiencing a downtrend due to ongoing outflows to exchanges. However, if this week brings positive changes in the larger economic landscape, crypto assets may bounce back. The market took a dive as investors anxiously awaited the release of the CPI data, with some analysts predicting an increase.

If the Consumer Price Index (CPI) shows a modest increase, investors may be inclined to shift funds towards safer investments if the Federal Reserve raises interest rates. Conversely, a lower-than-expected CPI could result in more inflows into riskier assets, potentially leading to price gains. The selling frenzy and reduced trading activity in the derivatives market have significantly affected crypto asset prices, causing a downward trend.

The market’s shift this week could lead to a short-term recovery for crypto assets. Moreover, the upcoming halving event, which is seen as a positive sign for the asset, is fast approaching and has already ignited optimism among investors in the broader market.

Is The Crypto Market Falling Today?

Read More

2024-04-10 19:41