Pulse of the Crypto Market
Cryptocurrencies Disappoint as Traders Cash Out After Recent Ascent of Bitcoin and Ethereum
The crypto landscape experienced a hiccup on Thursday as investors decided to cash in their profits following a prolonged rally. Bitcoin plummeted to $101,500, hinting at a delay in reaching the all-time highs fervently anticipated by bulls.
Major altcoins took a worse hit, with Ethereum shedding 3%, XRP, Solana, and Dogecoin all losing around 5%. It seems the cool breeze of profit-taking has seeped into the market.
Even traditional stock markets are feeling the chill, with interest rate reductions by the Federal Reserve for 2025 expected to occur less frequently than initially estimated.
Valentin Fournier, lead research analyst at BRN, views the steady flow of investments into Bitcoin and ETH ETFs as a pillar of support, sustaining the market's recovery despite this "modest pullback". He believes Bitcoin's $100k level will serve as a solid foundation for an extended accumulation phase.
Ruslan Lienkha, chief of markets at YouHodler, attributesthe current market shift to the conclusion of tariff negotiations and short-term traders cashing out their profits across various equity markets. Although this pullback signals a correction, it's still within the broader medium-term uptrend, according to Lienkha.
New challenges may loom on the horizon, with economic uncertainty and persistent high-interest rates in the U.S. potentially impeding crypto's progress and limiting its potential upswing.
A correlation assessment by Newhedge shows Bitcoin shares a 0.86 connection with the S&P 500. If this relationship continues, the fate of Bitcoin may hinge on the way the stock market dances to its own tune.
Edited by Stacy Elliott.
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- Despite a brief dip on Thursday, crypto enthusiasts are hopeful that Bitcoin will soon reclaim its all-time highs, with analyst Valentin Fournier, from BRN, predicting an extended accumulation phase at the $100k level.
- The crypto market saw major altcoins like Ethereum, XRP, Solana, Dogecoin, and others take a beating, losing around 3-5% following a series of profit-taking actions by investors.
- The current market shift is thought to be due to the conclusion of tariff negotiations and short-term traders cashing out their profits across various equity markets, as suggested by Ruslan Lienkha, chief of markets at YouHodler.
- Investors are showing continued interest in Bitcoin and Ethereum ETFs, which analysts see as a crucial support for the market's recovery despite temporary setbacks, such as the recent "modest pullback."
- The steady flow of investments towards DApps built on decentralized platforms like Ethereum represents a significant step in the evolving crypto landscape, especially in the realm of finance and investing technology.
- As economic uncertainty and high-interest rates persist in the United States, cryptocurrencies may face challenges that could potentially limit their upward progress. A correlation assessment by Newhedge indicates a strong connection (0.86) between Bitcoin and the S&P 500, suggesting that the crypto market could be greatly influenced by the way the stock market performs.
