By Nathan Ferguson
The cryptocurrency market failed to keep gains today. That comes as inflationary concerns and the Ukraine-Russia crisis hurt sentiments. The euphoria about the crypto executive order by Joe Biden faded after US inflation hiked to new 40-year highs.
Excluding dollar-tied Tether and AVAX, top virtual currencies traded lower early on Friday. Binance Coin and Bitcoin lost 6% each, while Cardano, Shiba Inu, and Ethereum dropped 5%. Meanwhile, the global crypto market capitalization declines to $1.72 trillion, following an approximately 5% crash within the past 24hrs. On the other side, the total crypto trading volume declined by 9% to $88.94 billion.
Expert Viewpoint
Mudrex founder Edu Patel commented on the current crypto market condition, saying the market cap shows leading cryptos dipped into the red within the past day. The executive believes ongoing conflict between Ukraine and Russia plus surged inflation contributed to the downswings. He added that geopolitical tensions might increase volatility within the cryptocurrency market.
The crypto spectrum shows maturity signs as markets mimic the global macroeconomic atmosphere. That is according to BitsAir Exchange CEO Kunal Jagdale. He added that legitimacy, regulatory buzz, and moving according to macro events boost the sector. Jagdale believes elevated inflation might attract institutions into crypto. Nevertheless, markets remain volatile, and market players should avoid leverage positions.
Tech View
Bitcoin has moved sideways without massive breakouts for more than a month. It tested the level at $32,300 – $34,400 (a critical demand region) twice and the crucial supply territory at $45,500 – $45,800.
The daily timeframe displays a trend-line, whereas FIB retracement indicated a 61.8% support floor at $37,900, which shows a possible near-term rebound that may retest the supply territory. It may be fascinating to watch the coming weeks while awaiting a potential breakout. Till then, investors might enjoy near-term trading opportunities.
Market sentiments remained somewhat neutral as geopolitical tension affected Bitcoin prices. Nevertheless, the latest Biden executive order gave crypto investors hope, and the market might witness lucrative recoveries.