Crypto markets rose higher Monday with Bitcoin (BTC), which traded over $ 84,000 when another positive day for US shares extended their rising repeal risk assets. The largest cryptocurrency had risen, the wider crypto market rose 1.8%, while the broad market coindk 20 index was easily designed with a 2.4% advance in the same period. Ethereums ether (ETH) stabilized over $ 1,900 and was 2.8% higher, while several ALTCOIN -MAJORS including Sui, Aave, ICP and nearly booked more than 5%.
Solana also angled 3% higher in line with the wider market, as the first day of solar-futures trade at institutional-focused marketplace CME did not make a difference in investor mood.
Ethhenas Governance Token (ENA) convened 7% on the news of developing a proprietary blockchain with tokenized asset issuer Securitize for the purpose of connecting Decentralized Finance (Defi) and traditional institutions.
The most important US stock indices that expanded their jumps into this week provided a favorable background for risk assets. However, the LMAX Group strategist Joel Kruger warned that the monthly S&P500 diagram is suggesting a sustained correction for US stocks that could weigh Cryptocurrencies.
“When we are considering the state of global merchant voltage and concerns about a slowdown in the US economy, all at a time when it is still more uncertain how much more accommodation Fed can offer, there are actually concerns that can fall further,” Kruger said.
He noted that there is a potential for a lower low for BTC to revise the 2024 March-Top to $ 73,000- $ 74,000.
The market almost universally expects Fed to keep rates unchanged during this week’s federal open market committee’s meeting, but investors should keep an eye on any potential change in the central bank’s balance run or quantitative tightening (QT) program, said David Duong, research manager at Coinbase Institutional.
“We believe that Fed can put or end its QT program this week as the bank reserve level is near 10-11% of GDP levels, often considered sufficient to maintain financial stability,” he wrote in a Monday report.
He said that the recent Crypto sale was largely due to macrophaic problems and worsening liquidity conditions, which could turn for the better over the next quarter, giving Tailwind at asset prices. “Crypto prices could find their bottom for the next few weeks before rebuilding to new heights later in the year,” he concluded.
