Bitcoin Correction Deepens
It’s been a disappointing week for Bitcoin bulls. Following a breakout move to fresh one-month highs, BTC futures have since reversed and are now almost back down at the weekly open. BTC started the week on a strong footing on the back of last week’s softer US inflation reading and with speculation mounting that the SEC would approve ETH ETF’s, expected to drive fresh demand across crypto markets. However, heavy pushback from the Fed against near-term rate-cut expectations has seen the US Dollar rebounding, weighing on risk assets across the board and dampening sentiment in crypto.
Ethereum ETF Approval
Despite the current correction, there are plenty of bullish drivers ahead. News this week that the SEC has approved the first stage of the launch process for 8 Ethereum ETFs is seen as paving the way for full SEC approval with chatter that funds could begin trading by July/August. If approved, this will help usher in fresh institutional demand into the crypto space with BTC prices likely to rally in tandem with ETH as we saw earlier in the week as initial speculation started doing the rounds.
Shifting Fed Views
With regards to USD, although the current environment has turned more hawkish it’s important to remember that should we see inflation drop firmly at the next reading, this will all shift again. If we see a proper downside move in CPI this will see near-term rate-cut expectations being rebuilt, leading USD lower and pushing crypto up again.
Technical Views
BTC
The sell off in BTC has seen the market reversing back under the bull channel highs and back under the 69355 level. Price is currently sitting on support at the 66625 level and bulls will need to defend this area to prevent a deeper drop towards 64540 next.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.