Home Markets The Current Condition of the Cryptocurrency Markets: A Mishmash of Sideways Trading and Inflation Impacts

The Current Condition of the Cryptocurrency Markets: A Mishmash of Sideways Trading and Inflation Impacts

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The Current Condition of the Cryptocurrency Markets: A Mishmash of Sideways Trading and Inflation Impacts

The market for cryptocurrencies has been trading in a range-bound manner over the past few days, in response to pronouncements made by the Federal Reserve and freshly published data on inflation in the United States. Because of this, investor mood has been all over the place, and Bitcoin, the cryptocurrency with the greatest market capitalization, has been having trouble breaking through critical resistance levels.

At the Federal Open Market Committee (FOMC) meeting in June, it was stated that there would be no increase in interest rates for the first time since March 2022. This was the first time that this decision had been made public. The Chair of the Federal Reserve, Jerome Powell, did indicate that there will be at least two more rate hikes before the end of the year. This has put pressure on stocks and led to a mixed close for major indices. This news also led to a somewhat stagnant day for the cryptocurrency market, with Bitcoin trading within $200 of a support level located at $26,000.

The most recent data on inflation in the United States revealed that consumer prices rose by 4% over the previous year, which contributed to the pessimistic outlook of the market. This represents a fall from April’s level of 4.9% and a considerable dip from last June’s level of 9.1%, which was a 40-year high. The relatively low monthly price gain of 0.1%, in comparison to April’s growth of 0.4%, has led to rumors and conjecture about the possible effects on the Bitcoin market.

Bitcoin is encountering significant resistance close to the level of $26,180, while finding support close to the level of $25,400. This can be seen from a technical point of view. At the moment, the market is in a phase of consolidation, and Bitcoin trading is taking place inside this range. A break out of this range will determine the direction that Bitcoin will head in for the next important move. The 50-day Exponential Moving Average (EMA) operates as a resistance level around $25,900, which indicates that there may be a conflict between buyers and sellers in the market.

The majority of the top 200 alternative cryptocurrencies traded at a loss, with the majority of tokens trading within a range of plus or minus four percent of the prices from the previous day. Token prices for Trust Wallet Token (TWT), TomoChain (TOMO), and Cartesi (CTSI) all increased, with TWT seeing an increase of 19.73%, TOMO seeing an increase of 11.92%, and CTSI seeing an increase of 10.57% correspondingly.

Despite the fact that the current state of the market may be considered “boring” by some crypto enthusiasts, it serves as a useful reminder of the significant influence that macroeconomic factors play in determining the values of cryptocurrencies. Traders and investors are keeping a careful eye on the market’s movement as Bitcoin interacts with these important levels of resistance and support.‚Äč

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