Crypto Upvotes experts analyzed the situation in the Crypto market. And told how it can change in the short term, as well as what will happen to Bitcoin price
Last week was a hot one. Bitcoin rose in price by 7.63%, but this is no reason to panic. The growth of quotations began in the evening of April 9. Since the new week, purchases of the first cryptocurrency intensified amid the growth of U.S. stock indices. After the end of the holiday in the U.S. and strong Friday employment data. Investors raised the probability of another Federal Reserve rate hike in May by 25 basis points.
Since this pace of rate hikes has been factored in by the markets. Then buyers went on the offensive after a prolonged sideways trend. At first they took the level of $29,380, and on April 12 they tested the psychological level of $30,000. The price went up to $30,550.
The locomotive for the whole market was Ethereum (ETH). On the night of April 12-13, the Shapella update was successfully activated on the main Ethereum network, after which it became possible to withdraw blocked tokens from staking. There was no reaction to the network update. Apparently, investors wanted to see how staking would behave after coins were withdrawn. The effect was delayed. The Shapella update boosted trading volumes and supported the bullish trend of the major altcoins. The ETH/USDt pair was up to $2,128.
On April 12, the U.S. Labor Department released its inflation report. The consumer price index rose 0.1% month-on-month and 5% year-on-year. Although, of course, everyone was expecting inflation to match the 0.2% m/m and 5.2% y/y forecasts. The inflation report couldn’t stop Bitcoin’s rise. That’s because the rise was supported by the Ethereum rally. And then the dollar also fell to 101.16p after rising.
On April 14, the pair BTC/USDt was rising to the level of $31,000. It was not possible to move higher – the dollar turned up and the indices went down. The dollar rose at the end of the week on strong industrial production data, which rose 0.4% in March after rising 0.2% the previous month (the forecast was +0.2%).
Cryptocurrencies have gained a trump card.
By the end of the day U.S. stocks closed the day down. But they recorded weekly gains across the board. Investors appreciated the weak retail sales report. Which undermined the enthusiasm about the start of the quarterly reporting season.
Cryptocurrencies have gained a trump card. Democrats and Republicans continue to play the political game of who will do more damage to the United States. Congressmen are haggling and the Treasury Department is paying higher interest on debt service.
Democrats and Republicans continue to play a political game of who will do more damage to the United States. Congressmen are haggling and the Treasury Department is paying higher interest on debt service.
On April 11, the cost of U.S. default insurance jumped to the highest level in a decade. Default insurance on 5-year U.S. bonds rose to 42.91p.
In 2022, the U.S. paid $853 billion in interest on its government debt. This year, the amount of interest payments on government debt could reach $1.2 trillion to $1.5 trillion. Yellen warned that the government has enough money until June. The country could face default in July or August. Right now, it doesn’t matter if there is a default or not. Bitcoin and gold could act as protective assets against it. Gold in physical form and Bitcoin in digital form.
The technical picture for Bitcoin is favorable for continued upward movement. Now we can head to the area of $34-35 thousand. For ETH the nearest target is around $2,770.
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