Crypto Wrap: Central Banks’ Inflation Comment Keeps Market Weak

[ad_1]

Following the lack of clarity over the FTX fiasco and hawkish comments from central banks around the world, the cryptocurrency market remained weak over the past week, with the total valuation slipping below $820 billion. . On Friday, total market capitalization was $813 billion, down from $826 billion last week. Bitcoin and Ethereum, the largest digital tokens by market capitalization, are trading below their important levels, experts told Business Standard.

“Bitcoin saw declines after seeing bullish momentum after last week’s Federal Open Market Committee (FOMC) meeting, but it has since rallied and is currently trading above the $16,800 level. Since November , Bitcoin price fluctuates in the $16,500-$17,000 range,” said Alankar Saxena, co-founder and CTO of crypto investment platform Mudrex.

“The main reason for market weakness is commentary coming from both the Fed and the ECB, with suggestions that inflation has become more ‘entrenched’ in the economy and will require prolonged periods of higher interest rates. “higher interest to dissipate. It’s bearish for ‘risky’ assets in general, and global equities continued to fall over the week,” said Parth Chaturvedi, head of crypto ecosystem at the CoinSwitch crypto trading platform.

“Bitcoin and Ethereum are trading below the important levels of $17,000 and $1,250, respectively,” Chaturvedi added.

On Friday, Bitcoin was trading at $16,861 and Ethereum at $1,223, according to CoinMarketCap.

The narrative around FTX’s collapse has changed with Sam Bankman-Fried agreeing to extradition. On Thursday, he was released on bail in the United States for $250 million.

What to expect next week?

“Other risks remain, with the worsening war situation in Ukraine being the biggest threat to raw material and energy supply chains. There has also been an increase in Covid cases in China, adding more uncertainties,” Chaturvedi said.

“To continue its upward trend, it is crucial that Bitcoin maintains its key level above the current level. However, if the price breaks below $16,500, there could be a return of bearish sentiment on the market,” Saxena said.

“Ethereum is currently trading above the $1,200 level, with immediate resistance at the $1,250 level and support at the $1,150 level,” he added.

[ad_2]