This year started with a string of dips in the crypto spaces as most digital assets lost a significant quantity of their market cap. March came with a relief rally as the market went bullish and green. However, following the recent pressure from regulators, crypto assets are on a downtrend again as the market becomes more bearish daily.
The Market May Crash Again
Recently, the inflation in the crypto market has been skyrocketing, and the Fed is determined to keep the inflation monster at bay. Consequently, the pressure on crypto is increasing, and investors are worried as they remove their funds from inflation inclined assets to the ones with fewer risks.
Statistics show that the market has lost investors’ funds of about $170B in the last couple of days. It is also noted that most Cryptos have lost their strong support lines causing the general market to incur about a 5% loss in total.
Many crypto speculators have voiced their opinions on the current situation in the market. One of the prominent commenters is the BitMEX boss, Arthur Hayes, who expressed that he believed the crypto market would crash by June. He buttressed this by referring to the relationship between the sinking NDX and crypto assets. He affirmed that if the Nasdaq 100 valuation drops as low as the 10,000 level, it will most likely bring BTC and many other digital assets down with it. He concluded that if his prediction is right, then investors should be ready to buy BTC at $30,000 and ETH at $2,500 in the next two months.
Santiment, an on-chain data source, revealed that FUD is rapidly growing in the crypto space and, more specifically, on ETH. It added that the market is quite bearish, with most digital assets losing the market cap on a daily basis. It concluded that if the market continues to be bearish, then investors should be ready to buy the dip again.
U.S. CPI Inflation May rise beyond 9%
In a speech on April 11, Jen Psaki, the Presidential Secretary, told reporters that the CPI headline inflation in March was quite expected to be extraordinary due to Putin’s price hike. She added that a significant difference is also expected between the core and headline inflation as a result of the current food and energy market instability.
A crypto market speculator, Lark Davis, revealed that according to the current situation, the market inflation might increase by 8.5%, making a 40yrs high. Nonetheless, if the inflation rises beyond the 9% mark, the market will be strictly corrected as things turn out badly.