Ethereum, BNB, XRP post solid gains but Bitcoin’s key support level shaky

Ethereum the leading altcoin, is currently trading above $1,200 (at a 10-day high) after an 8% spike in a single day, even though top altcoins have been regaining some of their recently lost value more impressively than bitcoin in recent days. Ether had fallen to $900 just one week prior.

The most valued cryptocurrency according to market estimate recently traded at $21.4K, an increase of 4% for the day at the time of writing.

BNB reached $240 after a daily increase of 4%. Cardano, Polkadot, Dogecoin, TRON, and MATIC all displayed comparable gains of over 15% for the week.

What you should know

  • This weekend, however, might present another challenge for Bitcoin, according to market experts. Bitcoin support still appears wobbly below, and another break below $20K could seriously undermine investor confidence.
  • Analysts were looking at key market indicators for clues that prices may have reached a bottom despite the ongoing shakeout in the crypto industry
  • Stocks rose on traditional markets after a University of Michigan survey revealed that consumers’ expectations for future inflation were lower than the previous reading. This was interpreted by traders as a sign that they should be less concerned that these expectations might become a self-fulfilling prophecy.
  • According to recent data, the Federal Reserve’s extreme hawkish stance against increasing inflation is to blame for the falling buying impulse in risky assets.
  • Notably, since reaching a record high of $69K in November 2021, Bitcoin has dropped by more than 74%. The major causes of this decline are the Fed’s benchmark rate increases and the methodical and thorough liquidation of a $9 trillion balance sheet.
  • On June 15, the U.S. central bank raised interest rates to their highest level since 1994 by 75 basis points. Meanwhile, its “dot plot” indicates that it intends to raise lending rates from their current range of 1.5-1.75% to 3.4% by the end of 2022.
  • That would entail further increases throughout the year, which could further reduce risk appetite and limit the potential for a recovery in both Bitcoin and the stock market.

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