Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
Bitcoin (BTC), the world's largest cryptocurrency, is likely to drop below the $30,000, according to Katie Stockton, founder and managing partner of Fairlead Strategies.
Stockton sees Bitcoin's failure to hold the $40,000 support level as the main bearish catalyst for another painful selloff.
She adds that the cryptocurrency has lost upside momentum similarly to the equities market. If Bitcoin keeps breaking down below the key support level, it will likely look like another bear market rather than a corrective phase.
Earlier today, the top cryptocurrency slipped to $38,202 on the Bitstamp exchange, the lowest level since March 15.
Vladislav SopovAt press time, Bitcoin is trading 18% below the yearly open price after briefly cracking above it in late March.
Bitcoin's smaller peers are also underperforming, with Ethereum (ETH) remaining well below $3,000. Dogecoin is the only cryptocurrency that has managed to buck the trend, spiking more than 12% on reports of Elon Musk being extremely close to acquiring Twitter after hashing out differences with shareholders.
Macro headwinds remain the main culprit behind the ongoing correction. By dramatically increasing the benchmark short-term interest rate, the Federal Reserve will make it costlier to borrow money, thus exerting more pressure on risky assets such as Bitcoin.
With cryptocurrencies becoming increasingly intertwined with traditional finance, their correlation with traditional financial assets, such as U.S. equities, continues to increase. The S&P 500 index is currently trading down 1.17% at the time of writing.
Arman Shirinyan
Vladislav Sopov
Dan Burgin