Bitcoin fluctuates near $30,000 as sell-off eases, but downside risks linger – Cryptocurrency News



Even though the tremendous downside pressures in the crypto space have eased in the last couple of days, Bitcoin has not managed to profoundly cross above $30,000 as investors remain cautious about the risks surrounding digital currencies since Terra’s devastating crash.  On top of that, increasing fears that the Fed will be forced to slam the brakes harder on the US economy coupled with the global ending of the ‘easy money’ era seem to be substantial factors that are driving crypto prices lower. In recent history, Bitcoin and major altcoins have rebounded from all their major downfalls, but how long is it going to take this time?

Macro headwinds emerge

In the past few months, the myth that cryptocurrencies are not linked to traditional assets because they are not backed by any fundamental factors has been shattered due to their strong positive correlation with risky assets and especially growth stocks. Therefore, lately, cryptos have been following the path of stocks, which are getting hammered by expectations of rising interest rates, increasing geopolitical tensions and recession worries. All the above appear to be negatively weighing on investors’ risk sentiment making them tilt to more defensive assets.

Moreover, global inflation remains a key performance driver for cryptos. Apparently, due to the continuously increasing cost of living and the withdrawal of stimulus policies, investors could be forced to cash out their risky investments to even keep up with their basic daily needs. Additionally, should inflationary shocks persist, central banks would need to act more aggressively, hiking rates faster and causing a broader sell-off in risky assets.

Regulatory woes re-emerge

Last week, Terra, which is a stablecoin supposed to match the US dollar but is now trading at 20 cents, crashed due to a cyber-attack, dragging its partner coin Luna down with it. Once this development was noticed by investors, it prompted a wave of panic selling and withdrawals for most major stablecoins, which spilled over to the broader crypto markets. Thus, unexpected falls in cryptocurrencies might ignite doubts about the safety of these investments and their future as virtual forms of payment.

Aside from being extremely volatile, most cryptocurrencies are unregulated, which not only increases uncertainty but also leaves investors vulnerable to frauds. Hence, policymakers need to act swiftly in regulating the crypto space otherwise a potential future failure or fraud could tear down investors’ trust in most cryptocurrencies and the broader prospects of a digital economy.

Bitcoin’s rebound capped at $30,000 mark

Taking a technical look at Bitcoin’s price, the largest cryptocurrency by market capitalization is experiencing a consolidation phase after its short-term advance failed to clearly push above the $30,000 region. However, the long-term outlook remains bearish, with the price trading more than 50% below its all-time high, while the descending 50- and 200- day simple moving averages are painting a murky picture for the cryptocurrency.

Should the sell-off resume, $29,200 could act as the first line of defense, a violation of which would turn the spotlight to the 2022 low of $25,390.

On the flip side, should buying interest intensify, the price could ascend towards the $32,800 barrier before it challenges $39,800.

Isenção de Responsabilidade: As entidades do XM Group proporcionam serviço de apenas-execução e acesso à nossa plataforma online de negociação, permitindo a visualização e/ou uso do conteúdo disponível no website ou através deste, o que não se destina a alterar ou a expandir o supracitado. Tal acesso e uso estão sempre sujeitos a: (i) Termos e Condições; (ii) Avisos de Risco; e (iii) Termos de Responsabilidade. Este, é desta forma, fornecido como informação generalizada. Particularmente, por favor esteja ciente que os conteúdos da nossa plataforma online de negociação não constituem solicitação ou oferta para iniciar qualquer transação nos mercados financeiros. Negociar em qualquer mercado financeiro envolve um nível de risco significativo de perda do capital.

Todo o material publicado na nossa plataforma de negociação online tem apenas objetivos educacionais/informativos e não contém — e não deve ser considerado conter — conselhos e recomendações financeiras, de negociação ou fiscalidade de investimentos, registo de preços de negociação, oferta e solicitação de transação em qualquer instrumento financeiro ou promoção financeira não solicitada direcionadas a si.

Qual conteúdo obtido por uma terceira parte, assim como o conteúdo preparado pela XM, tais como, opiniões, pesquisa, análises, preços, outra informação ou links para websites de terceiras partes contidos neste website são prestados "no estado em que se encontram", como um comentário de mercado generalizado e não constitui conselho de investimento. Na medida em que qualquer conteúdo é construído como pesquisa de investimento, deve considerar e aceitar que este não tem como objetivo e nem foi preparado de acordo com os requisitos legais concebidos para promover a independência da pesquisa de investimento, desta forma, deve ser considerado material de marketing sob as leis e regulações relevantes. Por favor, certifique-se que leu e compreendeu a nossa Notificação sobre Pesquisa de Investimento não-independente e o Aviso de Risco, relativos à informação supracitada, os quais podem ser acedidos aqui.

Usamos cookies para lhe dar a melhor experiência no nosso website. Ler mais ou alterar as configurações de cookies.

Aviso de risco: O seu capital está em risco. Os produtos alavancados podem não ser adequados para todos. Recomendamos que consulte a nossa Divulgação de Riscos.