Pre-halving volatility continued to dominate cryptocurrency markets as prices reversed from Monday’s surge, causing Bitcoin (BTC) to plummet below $69,000 and altcoins to fall significantly.
Stocks were also lower for most of the trading day as investors sat on the sidelines ahead of tomorrow’s Consumer Price Index (CPI) report, which is expected to provide insight into the potential trajectory of US interest rates. Currently, the market predicts a 57% chance of a rate cut in June and a 74% chance of a rate cut in July.
Nevertheless, while S&P and Nasdaq succeeded in breaking out of negative territory due to the rise in closing prices, the Dow ended flat.
Bitcoin has been trending lower since reaching a high of $72,800 on Monday, falling 6.82% on Tuesday afternoon to reach a low of $68,200, according to data from TradingView. However, buyers of the dip have since taken it back above $69,000, and as of this writing, BTC is trading at $69,030, down 3.75% in the last 24 hours.
Market analyst Bloodgood described the current macro environment as oscillating between hopes for a perfect soft landing and fears of inflation, which recently appears to be trending downward.
He emphasized the importance of tomorrow’s CPI release and warned of potential inflation-related surprises, urging caution, especially for those holding leveraged positions.
Regarding Bitcoin, Bloodgood noted a lot of indecision recently, but expressed confidence in the bulls being in control due to upward drift and printing of higher lows. But he highlighted the challenge to the current all-time high of just over $73,700.
Bloodgood also touched on some unusual aspects of this bull market cycle, including interest in memecoins and the continued rise of gold. He urged traders to focus on current charts rather than relying on fractal patterns or previous cycles to predict future movements.
In conclusion, Bloodgood suggested that despite the current dominance of memecoins, capital could be diverted to technically impressive projects later in the cycle.
According to Michael van de Poppe, founder of MN Trading, Bitcoin is likely to trade sideways in the short term and consolidate until some point after the halving.
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