Bitcoin is on the verge of falling

Bitcoin is on the verge of falling

To analyze the current situation in the cryptocurrency market, it is necessary to closely monitor the situation in the global economy. One of the key drivers of financial markets in recent days are the words of the head of the ECB that the European economy will suffer from the conflict in Ukraine much more than the American one, and in general, the eurozone is lagging behind the United States in terms of recovery processes. If the ECB still cannot come to a consensus on the timing of the start of monetary policy tightening, then the Fed representatives say that it will be quite appropriate to raise the interest rate by 50 basis points in May at once.‚Äč

Against this background, the dollar gets an opportunity to strengthen further against competitors from developed countries, while risk appetite remains at a low level. The problem also lies in the fall of American indices, which is due to weak corporate reporting for the first quarter. Apparently, companies have begun to feel the effects of high inflation combined with a reduction in stimulus measures. In such conditions, capital flows into safe haven assets, like the dollar, while investors are very cautious about risky instruments: cryptocurrencies, stocks, etc.

We expect a further decrease in the value of BTC to $37.5 thousand.

The probability of a further drop in quotations is still estimated as very high: the price could potentially reach the $30 thousand mark.