Despite the return of the BTC price to the $ 20,800 range, investors are still pessimistic about these cryptocurrencies. Fear of bitcoin investors is holding back the cryptocurrency.
Bitcoin traded around $ 20,800 on Monday. The cryptocurrency has lost some of its recent price spike. Despite BTC still retaining its $ 20,000 support, analysts are disappointed with the future of the cryptocurrency.
Read more: Bitcoin in 2022
Fear of Bitcoin investors
Simon Peters, a digital currency analyst at EToro, believes that the cryptocurrency market has been hit hard by factors such as declining operating business income, growth and inflation, and rising US bank interest rates. These factors also affect the stock market and other assets.
There is a strong correlation between the digital currency market and the US stock index. Craig Erlam, senior analyst at Oanda Group, believes that the fall in bitcoin in recent weeks is a reflection of investors’ negative feelings about risky assets.
It is now seen that investors’ fears about the poor state of the Celsius lending platform and investment firm Three Arrows Capital have greatly diminished. According to Howard Greenberg, president of the Prosper Trading Academy, the “fear and greed” index of digital currencies has moved away from the extreme fear range. Greenberg believes that the next upward jump in cryptocurrencies will occur after breaking the simple 200-week moving average (SMA 200) and maintaining it.
The latest state of the digital currency market and US stocks
In recent days, the digital currency market has experienced a slowdown. Atrium, for example, has lost 2% of its value in the last 24 hours. The currency code is fluctuating around the $ 1,200 resistance area. Paligan.com, which started its uptrend last week, also fell 7% in the last 24 hours.
The US stock market is also not in a good position due to the fear of recession among users. Research by the American Association of Independent Investors (AAII) shows that the distribution of downward sentiment among investors increased by 11.4 percent to 58.3 percent. The distribution of investors’ bullish sentiment also fell to 19.4%.
According to Bloomberg, some important industrial metals such as tin and copper are on the verge of recording their worst seasonal performance since the 2008 financial crisis. If these metals continue to perform poorly, the likelihood of a new era of recession begins is even stronger. The S & P500 and Nasdaq have fallen 0.3% and 0.8% in the last 24 hours, respectively. According to Bilal Hafeez, CEO of Macro Hive, the downtrend is likely to continue.
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Source: coindesk