Bitcoin’s fall is unlikely to stop above $25K
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The crypto market lost 3.2% in the last 24 hours, dragged down by the institutions’ favorite instruments: Bitcoin (-4.5%) and Ether (-4.3%). Other top altcoins range from -4% (Polygon) to 0% (XRP). The Cryptocurrency Fear and Greed Index fell to 49 (neutral), the lowest level in two months.
Bitcoin is trading at $26.3K, its lowest level since March 17, losing over 15% from its peak last month. The local technical pattern gives little reason for optimism. Bitcoin fell well below its 50-day moving average at the start of the week. By Thursday’s close, it was below $27.5K, the support line for the past two months. Friday’s early morning drop took BTCUSD below the 61.8% Fibonacci retracement level from the rally from the March lows. In other words, we see more than just a correction of this latest growth impulse.
Bitcoin’s return to $25K looks like a real prospect in the coming days. The bears will have their work cut out for them here, as some oversold conditions will have built up by then. The $25K level is also significant that Bitcoin did not break between the middle of last year and the middle of March. Now it has every opportunity to become an equally reliable support.
News background
Crypto assets can become a hedge against inflation, according to rating agency S&P Global. However, the history of the crypto market needs to be longer to prove this hypothesis.
The New York State legislature has begun considering a bill that would allow dollar-pegged stablecoins to be used as a legal means of paying bail for defendants.
Former SEC official John Reed Stark has urged US financial regulators to ban crypto-related companies from offering Tether (USDT) stablecoins. According to him, the USDT stablecoin issuer could be the next domino to fall.
According to documents filed with the SEC, Franklin Templeton, which manages more than $1.4 trillion in assets, plans to launch a second blockchain fund. The minimum investment in the fund will be $100,000.
Circle, the issuer of the USDC stablecoin, has waived US Treasury bonds maturing after May 31 in the event of a US sovereign debt default.
Elon Musk released a meme with NFTs from the Milady collection, resulting in a 2600% increase in anime token sales and hundreds of times the price increase of Milady Meme Coin.
This article was written by FxPro’s Senior Market Analyst Alex Kuptsikevich.
