Home Finance Crypto-currency market the worst is yet to come, an expert explains why?

Crypto-currency market the worst is yet to come, an expert explains why?

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The crypto-currency market has shown some strength over the past 24 hours. The price of bitcoin has risen by 2.57% and is currently trading at $20,161. Ethereum has also jumped 1.8% in the last 24 hours and has crossed the $1,352 mark.

XRP broke its fall and jumped 5% in one day and is currently trading at $0.4793. Dogecoin (DOGE), which rose 8% in one day, was another big winner in the crypto-currency market.

However, experts believe the crypto rally may not last long. Michael van de Poppe, CEO of Eight Global and a crypto analyst, believes that the dollar is ready for a rally. As a result, the crypto market may experience a sharp correction.

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US unemployment data will also be released on Friday. Michael Poppe thinks that this data could be bad and have a bad effect on the market.

Why the crypto-currency market is struggling

Despite today’s rally, the crypto market is still displaying bearish sentiments. The Federal Reserve remains hawkish despite fears of a global recession. The United Nations has called for the world’s economies to pivot from their aggressive stance. However, it remains unlikely that the US central bank will comply.

The Fed’s position will be clearer when Atlanta Fed President Raphael Bostic delivers a key speech Wednesday. Charles Evans of Chicago and Loretta Mester of Cleveland will speak on Thursday.

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Oil prices will create additional uncertainty in an already unfavorable macroeconomic environment. The Organization of the Petroleum Exporting Countries is mulling the biggest supply cut since 2020 to bring prices back up. OPEC+ will meet on Wednesday to formalize the decision.

What will the Fed’s decision be?

The crypto-currency market is still highly correlated to the broader general market. Therefore, macroeconomic conditions will always dictate price movements.

The CME Fed Watch tool still predicts another 75 basis point hike at the next Fed meeting.

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