Bitcoin, Ether, Terra Outlook: Bearish
- Bitcoin The ether clings to psychological levels
- Investors remain cautious ahead of the FOMC meeting
- Risk sentiment turns into safe haven assets (For now)
Amidst a turbulent geopolitical backdrop and mounting inflationary pressures, risk appetite continued to deteriorate, affecting cryptocurrencies and stocks alike.
Although Bitcoin and Ether have snapped more than 50% of gains since peaking in November of last year, Terra (Luna) crash and a softer crash dollar It also helped stimulate price action.
With a batch of high-impact economic data expected to be released throughout the next week, Bitcoin (BTC) and Ether (ETH) may remain weak on their respective psychological levels.
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With central banks clamping down on inflation (through interest rate hikes and other quantitative tightening measures), stablecoins are still under scrutiny after Terra wiped out billions of dollars from the total market cap of the crypto space.
However, at the time of writing, Bitcoin is still looking to deal with $30,000 while Ether aims to gain traction above $2,000.
If the upcoming data proves to beat expectations, there is a possibility that digital assets will benefit from a more bullish outlook.
Conversely, if price pressures continue to rise, a break below $26,000 (BTC) and $1,700 (ETH) could restart the bearish move.
— By Tami Da Costa, Analyst for DailyFX.com
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