Cryptocurrency developments to watch out for when Bitcoin's price levels down QuoteCoin
New York City: Since BTC’s price is stuck in a narrow band, other assets have a better chance of making headway in a weak market.
Despite a tidal wave of interest rate rises from the United States Federal Reserve, a hotter-than-expected consumer price index (CPI) data revealed excessive inflation remained a chronic concern, sending prices down. Bitcoin and Ethereum prices, in particular, appeared to have already factored in investors’ expected negative response to a high CPI figure.
Even after the price dip after the release of the CPI reading, Bitcoin has remained inside the same trading range it has been within for the last 122 days. Bitcoin’s futures open interest is at an all-time high, while its volatility is approaching all-time lows, according to a research by Cointelegraph market expert Ray Salmond.
Explosive price fluctuations have often been preceded by these and other signs, but as history shows, it is practically difficult to forecast which way they will go.
As a result, Bitcoin has been doing much the same thing for the last 4.5 months despite several indices suggesting a major price shift is coming. If that’s the case, maybe it’s time to start casting your net wider in search of new developments and openings.
There will be a resurgence of new spinsThe post-Merge period has seen ETH’s price fall, and the asset now reflects the pessimistic trend that has been prevailing throughout the market. The price of Ethereum (ETH) has dropped by 30% since the Merge, from a high of $2,000, and many investors who followed the bullish Merge narrative are now likely sitting on stablecoins as they wait for the next investing opportunity to arise.After the merger, Bitcoin’s price movement is expected to dominate.
While new patterns may arise among different cryptocurrencies, the larger environment in which crypto assets reside must be kept in mind. The world economy is in shambles, and the United States and many other nations continue to struggle with excessive inflation. Bond values are wildly fluctuating, and the oncoming debt catastrophe is becoming more apparent every day. Incredibly turbulent equity markets, geopolitical tensions, and other market events may have a significant influence on investor mood, which in turn can have a significant impact on the price of risk-on assets like cryptocurrencies.
With this in mind, any sudden changes in BTC’s price are likely to bolster or dampen any nascent microtrends in the market. Bitcoin is still the biggest asset by market capitalization in the cryptocurrency industry. Although several measures may justify starting long positions in other crypto assets, it still appears too early to completely jump in given the probability of a significant decline in Bitcoin’s price.
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