Crypto Market Set For Another Bottom, Expert Reveals Why
The crypto market showed some strength in the last 24 hours. Bitcoin prices went up by 2.57% in the last 24 hours and are currently trading at $20,161. Ethereum also surged by 1.8% in the last 24 hours and crossed the $1,352 mark.
XRP broke its slide and surged by 5% in a day and is currently trading at $0.4793. Dogecoin (DOGE), which increased by 8% in a day, was another big winner in the crypto market.
However, experts believe that the crypto rally may not last for long. Michael van de Poppe, the CEO of Eight Global and crypto analyst, believes that the US dollar is set for a rally. As a result, the crypto market can see a slight correction.
US unemployment data will also be released on Friday. Michael Poppe believes that the data might be bad and have a bad effect on the market.
Despite today’s rally, the crypto market is still showing bearish sentiments. The Federal Reserve remains hawkish despite global recessionary fears. The United Nations has asked global economies to pivot from their aggressive stance. However, it remains unlikely that the American central bank will comply.
The Fed’s stance will become clearer as Atlanta Fed’s president Raphael Bostic will deliver a key speech on Wednesday. Chicago’s Charles Evans and Cleveland’s Loretta Mester will speak on Thursday.
Oil prices will create additional uncertainty in an already unfavorable macroeconomic environment. The Organization of Petroleum Exporting Countries is mulling over the biggest supply cut since 2020 to raise prices. The OPEC+ will meet on Wednesday to formalize the decision.
What Will The Fed Decide
The crypto market is still strongly correlated with the broader general market. Therefore, macroeconomic conditions will still dictate the price movement.
The CME Fed Watch tool still expects another 75 bps hike in the next Fed meeting.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.