Some people criticize the unpredictability of the cryptocurrency market, as demonstrated by the recent price drops within the last 12 hours that resulted in approximately one billion dollars worth of liquidations.
Bitcoin held up better than many other assets, yet its value dipped from roughly $71,000 to $65,000 before bouncing back up to around $67,000.
Volatility Across All Markets
Altcoins experienced significant drops, with many declining by double digits within hours. Notably, established markets like the US stock exchanges also saw price decreases. For instance, the S&P 500 and Dow Jones Industrial Average both dropped from above 5,210 to under 5,100 in a short time frame, while the Nasdaq Composite followed suit.
Gold, often regarded as a reliable and unchanging investment during turbulent times, dropped by 4% within hours, falling from its peak price of $2,433 down to $2,333.
Prior to that point, gold had been experiencing significant growth, with particularly noteworthy progress since it surpassed $2,000 this year. The geopolitical turmoil in Europe and the Middle East served to boost gains even further. However, when Iran joined the mix, prices skyrocketed, pushing gold to its all-time high in dollar terms.
Yet, remarks from several US Federal Reserve high-ranking officials seemingly affected all markets. Among them were Raphael Bostic, President of Atlanta’s Federal Reserve Bank, and Mary Daly, President of San Francisco’s Federal Reserve Bank. These individuals predicted that the central bank might postpone its shift from its existing monetary policy.
The two branch presidents denied the reports that the Federal Reserve was planning to reduce interest rates imminently. Daly expressed that “there is still much to accomplish” and emphasized firmly that “there is no need to act hastily on cutting the rates.”
Crypto Market Outlook
Despite potentially causing turbulence in riskier markets such as cryptocurrencies and Wall Street, gold could actually benefit from these circumstances. Its role as a safe-haven asset suggests that its value relative to the dollar may even rise after such comments.
Instead of this: “However, the greenback actually rose against other currencies.” You could say: “On the contrary, the US dollar gained strength versus other currencies.”
Despite a daily loss in the crypto market and a significant withdrawal of over $250 billion within hours at one point, there are indicators of potential recovery. The Bitcoin halving is approaching in a few days, an event known to spark new bull markets based on past trends.
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2024-04-13 09:26