After losing 5% of its value this Thursday (9), Bitcoin bounced back to trade below $22,000 for the first time in the past three weeks. Other cryptocurrencies are following the decline.
One of the reasons that led to the fall is the SEC’s fine against the Kraken brokerage for staking services. That is, this is yet another example of the US exerting pressure on the cryptocurrency sector from all sides.
Shares of Coinbase, the largest US exchange, were also impacted by the SEC’s decision, ending the day down 12.9%. Coinbase CEO Brian Armstrong had already covered the topic before it was revealed to the public.
Coming back to Bitcoin, new statements from the Fed on Wednesday (8) also helped with the market pressure. According to Lisa Cook and Christopher Waller, interest rates should not only continue to rise, but should remain at this level for a long time to come.
“We are determined to bring inflation back to our goal. So I think we are not done raising interest rates and we need to keep interest rates tight enough.”said Lisa Cook.
“It could be a long fight, with interest rates higher for longer than some currently expect”added Christopher Waller.
Therefore, many traders may have reconsidered their short- and medium-term strategies and closed long positions.
$25,000 resistance is expected
While several analysts point out that bulls will have a hard time breaking $25,000, the truth is that Bitcoin didn’t even make it there. On Thursday of last week, the 2nd, Bitcoin hit $24,258, its yearly high, and it has only fallen since then.
In other words, the bulls may have given up on this fight before it even happened. After all, if everyone agreed that Bitcoin would not immediately break $25,000 and undergo a correction, it would be better to take profits and/or stay out of the market until a better risk/reward is presented.
Still based on these analyses, Tone Vays believes bitcoin will drop to $21,000. Peter Brandt is slightly more bearish and predicts that the next support will be in the $18,000 region.
The worst is over, says Pantera Capital, stating that we are in a bull market
Despite the recent correction, the general view is that the crypto winter is behind us and giving way to spring. In addition to the analysts above, another who agrees is Pantera Capital, a fund that has been investing in Bitcoin for 10 years.
“We have already invested in four winters of cryptocurrencies”said Dan Morehead of Pantera. “I believe we are done [com o mercado de baixa] and we started moving up. I believe blockchain assets have gone through their lows and we are in the next bull market cycle.
Finally, other cryptocurrencies followed Bitcoin’s fall. Ethereumthe second largest in the market, records a daily decline of 6.2%.
all the The graph (GRT)AI cryptocurrency that was appreciated 48.5% after ChatGPT’s integration with Bing, it is now one of the worst performers, falling 13% this Friday (10).
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
