On Monday, the BTC is consolidating at 20,350 USD. Two very troublesome and nervous days passed, when the crypto survived a stressful decline and an attempt of a recovery. Over last week, the leading cryptocurrency lost 22.6%, which is a serious loss. The situation gets even worse because every attempt of recovery ended up in a new wave of sales. A bounce by 8% yesterday was just a sensation that few believed in.
The reasons for the decline are the same: the crash of the US stock market and simultaneously – the toughening of credit and monetary conditions by the Federal Reserve system. As long as the interest rate will go on growing, there are no serious reasons for a reversal yet.
Technically speaking, the medium-term trend remains descending with a probable goal of 10,000 USD. For the scenario to be cancelled, the price needs to secure above 27,500 USD. The chances for this will grow when and if the BTC will rise above 21,500-21,750 USD. The picture remains unstable and restless. On Monday, US stock markets are shut down, but investors are getting prepared for active trading on Tuesday. Cryptocurrencies will also liven up then.
Last Sunday, the crypto market corrected quite a bit. The leader of the bounce among the Top 10 cryptocurrencies was the ETH (+13.3%), the DOGE (+12.75%), SOL (+9.96%), and BNB (+8.80%) followed it. The ADA grew less than others (+6.44%).
Buterin: crypto will not replace fiat money
The founder of the Ethereum Vitalik Buterin thinks that crypo will hardly ever dominate over traditional currencies. He does not anticipate for crypto to capture the world. On the whole, this comment does not contradict what he said earlier, though during the pandemic he was more optimistic about crypto.