Cryptocurrencies have filled their teeth
The correction in the cryptocurrency market, which started at the end of last autumn, continues. The problem here is not even in the cryptocurrencies themselves: American stocks are also getting cheaper after a long period of growth associated with both increased demand for risky instruments against the background of unprecedented stimulus measures by major central banks. Unfortunately for buyers, the negative sentiment in the market does not disappear, but receives constant replenishment.
In particular, it is worth highlighting the recent statements by the head of the ECB that the European economy will suffer more because of the military actions in Ukraine than the American one. These words reinforced dollar purchases, where investors actively transfer their savings in moments of strong uncertainty. Moreover, there are also the first corporate reports of US companies for the first quarter of this year, which indicate the negative impact of accelerated inflation and the reduction of measures to support the economy. It is also worth mentioning the fact that already in May the Fed may take a big step towards raising the cost of loans and raise the interest rate by 50 basis points at once.
In other words, the time for risky assets is now extremely inappropriate.
In such circumstances, the most likely scenario is a further decline in digital assets, where it is extremely dangerous to keep money now. This will continue until there are good reasons for optimism regarding the global economy and other risky instruments, such as American technology stocks. We expect a decline in bitcoin quotes to $37.5 thousand, with the possibility of a further fall up to $30 thousand remaining.