The crypto market has been under serious pressure after a strong show in March and early April! As inflation number rises and the Fed prepares to tighten market liquidity with interest rate hikes, investors are eager to shift their funds to risk-averse assets.
The crypto market has eroded a staggering $170 billion in investors’ wealth over the last two days. Bitcoin and the broader crypto market are down 5% as of press time, having lost significant support levels.
BitMEX CEO Arthur Hayes is expecting a major crypto carnage by June 2022. Hayes mentions the correlation between the Nasdaq 100 (NDX) index and Bitcoin. He expects the Nasdaq 100 will fall to 10,000 levels and even lower. This will certainly have an impact on the crypto market. The BitMEX CEO expects Bitcoin (BTC) will reach $30,000 and Ether (ETH) to reach $2,500 by the end of June.
On-chain data provider Santiment reports that there is growing FUD in the crypto market, particularly surrounding Ethereum. It also mentions that this might create some buy-the-dip opportunities. Santiment reports:
There is a whole lot of #bearishness circulating in #crypto circles as market caps continue to drop following the incredible March. #Ethereum, in particular, has seen a ton of #FUD even prior to its price rally, and #buythedip opportunities may arise.
U.S. CPI Inflation Likely to Rise Above 8%
White House secretary Jen Psaki claimed that March inflation figures could be “extraordinarily elevated” referring to it as the “Putin price hike.” On Monday, April 11. During her address to reporters, Psaki said:
“We expect March CPI headline inflation to be extraordinarily elevated due to Putin’s price hike. We expect a large difference between core and headline inflation, reflecting the global disruptions in energy and food markets.”
According to market predictions, the inflation numbers could soar to 8.4%, hitting a four-decade high. However, if the actual number rises, we can expect a steeper correlation in the crypto market. Lark Davis, a market analyst, wrote:
“Tomorrow’s bad inflation data could already be priced in after the warning from the White House, that is if it is only like 8.5%. But if it is anything over 9%, then we are probably heading lower as that is worse than the market expects. IMO”.
