• The last seven days in the cryptocurrency market have been marked by a fall
  • Market capitalization plummeted to $1.5 trillion
  • A bearish scenario is unfolding before our eyes

This week, Bitcoin marked a new low of the downtrend, which has been going on since November. If we count from record ATNs, then the main cryptocurrency has lost as many as 14 percent. Optimists refer to the statistics of historical corrections and believe that this is a temporary cooling. But if you look at the cryptocurrency market from a broader perspective, then everything does not look so rosy. Why?

Source: coingecko.com

Bitcoin’s attempt to rebound on Wednesday ended at $14 . The daily candle has a long upper shadow, which means that the previously broken support is at $20 now became a resistance level. His breakthrough was thwarted by Jerome Powell, who maintained a tough stance in his speech. In his speech between the lines, he said that a cycle of rate hikes would begin in March. This caused a recession on Wall Street, and then on the crypto market.

So, the US will continue to tighten the monetary belt. In addition to raising rates, there are plans to reduce the balance sheet total, which is bad news for speculative assets in general. Why? Because safe assets are becoming more and more attractive, and capital will gradually move away from stocks and cryptocurrencies. And since cryptocurrencies have less liquidity, losses here will be more serious and faster.

Bitcoin reacts to bad news and does not react to good203510

ready to respond to bad news. And he remains indifferent to good news.

This is illustrated by the example of Russia. When the Central Bank announced that cryptocurrencies should be banned, the market immediately reacted with a strong fall. Yesterday came fresh news that Russia will not interfere with mining. But the quotes almost did not react to the good news.

What to do now on the crypto market, what are the opportunities and prospects – see our latest material:

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