The euphoria at Cryptocurrenciesthat was caused by trying to recover above the $ 50,000 mark ended as quickly as it started. Bitcoin-Buyers couldn’t get over this resistance keep. As a result, the sellers took the initiative and pushed the price below $ 48,000.
Trading activity is weak in the last few days of the end of the year as most market participants took a break before the Christmas and New Year holidays. Those who have stayed in the market prefer not to open any new trades until the new year. An empty economic calendar can also mean low liquidity in the conventional financial markets and the Blockchain– Explain industry.
It should be noted that the dynamics of the cryptocurrency market in different time periods are increasingly related to the general market sentiment. In other words, the cryptocurrency market is driven by the risk appetite of investors.
Positive sentiment usually helps risky assets grow, while negative sentiment can trigger a sell-off. As the epidemiological situation begins to deteriorate worldwide, traders are cautious. The number of coronavirus cases is increasing rapidly.
France reported a record high of 179,807 newly confirmed cases on Tuesday, the highest number since the pandemic began. French Health Minister Olivier Véran warned that the Omicron variant would soon be the dominant virus strain in France.
Earlier this week, Greece recorded 21,657 new cases. Denmark has the highest Covid infection rate in the world with 1,612 cases per 100,000 inhabitants. Spain’s coronavirus infection rate exceeded 1,000 cases per 100,000 population. Such depressing statistics are forcing the authorities to introduce new quarantine restrictions.
For example, Germany and France have closed their borders to travelers from the UK. The Netherlands have announced a strict lockdown over Christmas, with non-essential shops, bars, gyms and other public facilities closed until mid-January.
Such a news backdrop severely tarnishes the prospects for global economic recovery, forcing investors to rebuild their portfolios and divert capital into safer investments. The demand for government bonds and government bonds has risen sharply in the last few days.
Additionally, traders began shedding risky assets as they anticipated monetary policy tightening in the United States. The Federal Reserve has to end its purchase program and raise the key rate three times in the next year.
Most experts believe that the first rate hike could come in March 2022. If those expectations are justified, the first quarter of the new year can be extremely unfortunate for all risky assets, including cryptocurrencies. With that in mind, we recommend selling BTC / USD with a target of $ 40,000.
Source: Crypto News Deutsch