Bitcoin, Ethereum pull back on interest rate fears, trader warns those expecting $50,000 Apex Crypto this summer, ‘Things are never that simple’
Major coins were seen in the red on Sunday night at 20:55 as the global cryptocurrency market capitalization fell 1.75% to $1.1 trillion.
| Coin | 24 hours a day | 7 days | Price |
|---|---|---|---|
| Bitcoin BTC/USD | -1.7% | 11.5% | $24,254.32 |
| Ethereum ETH/USD | -1.2% | 10.7% | $1,671.60 |
| Dogecoin DOGE/USD | -2% | 6.4% | $0.09 |
| Cryptocurrency | 24-hour % change (+/-) | Price |
|---|---|---|
| Stacks (STX) | +82.8% | $0.72 |
| Conflux (CFX) | +41.4% | $0.22 |
| Filecoin (FILE) | +12.8% | $8.70 |
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What Happened: Bitcoin and Ethereum was seen lower after shares ended last week on a mixed note. On Friday, the S&P 500 fell nearly 0.3% for the week, while the Nasdaq rose nearly 0.6% over the same period.
Investors continued to worry about inflation and the subsequent impact on interest rates. OANDA Senior Market Analyst, Edward Moyawrote on Friday, “It’s not just Fed expectations that are rising, traders also expect the ECB to send rates much higher. It looks like global growth will definitely be hit harder as monetary policy becomes even more restrictive over the next few months.” »
Nevertheless, investor sentiment has weakened during the week. Last week, Alternative.me’s “Crypto Fear & Greed Index” flashed “Neutral,” but at the time of writing it indicated “Greed.”
The Fear & Greed Index measures sentiment over time with values from 0 to 100 where the highest value represents “Extreme Greed” and 0 indicates “Extreme Fear.”
Michael van de Poppe noted that “people are focused” on Bitcoin reversing the 200-week moving average. The trader tweeted, “But the total market capitalization of [cryptocurrencies] broke through it and had a beautiful retest + maintained it as support. Most likely we will continue with a 2x for the entire market from here.”
Justin Bennett warned his followers that “things are never that easy.” The trader said there were many tweets comparing the 2019 bear market rally and expecting a $50,000 Bitcoin this summer.
“The 2020/2021 bull market was nothing like 2017, so why assume the 2018/2019 bear market will repeat itself?”
However, Bennett said he believes “we’ll see higher prices” from Bitcoin in the coming weeks.
Bitcoin and cryptocurrency investor Lark Davis noted the growth in Ethereum ownership last year and called it “Insane.” He shared a chart showing that Ethereum ownership rose from 25 million in January 2022 to 87 million in December of the same year. This corresponds to an increase of 248%.
According to the chart, Ethereum adoption rose significantly in the months leading up to the so-called “Merge” or the cryptocurrency’s transition to a proof-of-stake model.
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