Fluctuating Cryptocurrency Market Amid US Economic Worries
In a setting affected by macroeconomic uncertainties, significant cryptocurrencies demonstrated diverse trends on Thursday in response to remarks by US Federal Reserve Chair Jerome Powell. He highlighted the potential consequences of an economic slowdown coupled with escalating inflation triggered by imminent tariffs. During mid-morning IST, Bitcoin recorded a slight increase of 0.7% to hit $84,312, while Ethereum saw a rise of 0.6%, trading at $1,596. The global cryptocurrency market value edged up 0.2%, reaching $2.64 trillion.
Insights from Experts
Vikram Subburaj, CEO of Giottus, recognized Bitcoin’s resilience, noting, “Despite broader market weaknesses, Bitcoin maintains stability above $84,000. A short surge to $86,000 was reversed post the US Fed Chair’s warning regarding increasing economic risks due to tariff policies.” He also highlighted altcoin trends, mentioning Solana’s 3% climb to reclaim the $130 threshold, while Ethereum struggled below $1,600. “Both Bitcoin and altcoins are likely to trade within set boundaries this weekend. Analysts are closely watching specific levels — a breakthrough above $88,000 or a dip below $80,500 could influence future trends,” he added.
Avinash Shekhar, Co-Founder & CEO of Pi42, stressed the careful sentiment prevailing in the market, noting, “Even with Bitcoin’s relative steadiness, caution lingers as the US hints at possible tariffs on China, heightening macroeconomic uncertainties.” Shekhar predicted that major token prices might exhibit subdued or volatile movements in the short term, influenced by miner activities, Ethereum upgrades, and regulatory updates from both the US and China.
Market Landscape and Technical Evaluation
Bitcoin’s market capitalization surged to $1.673 trillion, increasing its dominance in the cryptocurrency realm to 63.05%, with daily trading volumes spiking by 3.7% to $27.92 billion. Notably, stablecoins represented 91.55% of the total trading volume, amassing $72.34 billion as per CoinMarketCap data.
Discussing Bitcoin’s technical standing, Sathvik Vishwanath, Co-Founder & CEO of Unocoin, highlighted, “Bitcoin hovers around $84,000 with a 14-day RSI of 42.66, indicating neutral momentum.” He cautioned about a potential ‘death cross’ pattern where the 50-day moving average could dip below the 200-day average, indicating likely downward risks. Key support levels are identified at $76,000 and $73,800, with resistance expected near $89,000. Despite significant investors accumulating Bitcoin, selling pressure perseveres due to overarching macroeconomic hurdles and ETF outflows. Vishwanath also noted that while April historically showed strength for Bitcoin, current conditions call for cautious optimism.
Wrap-Up
As the cryptocurrency market maneuvers through a period fraught with doubt, particularly following the US Federal Reserve’s alerts on economic risks, the varied performance of primary cryptocurrencies stresses the importance of caution among investors. Essential price points could shape the market’s direction in the forthcoming days. Staying abreast of macroeconomic happenings, regulatory shifts, and market dynamics will be pivotal for all participants in this evolving domain.
