As you know, the crypto ecosystem can be plagued with really risky actors and they get too big and influential, like FTX and Alameda have in the past. And so, drawdowns like 2022 seem to flush out a lot of the bad actors and expose those that took on too much leverage and risk. Now, it might be too soon to say, but it is possible that most of the really risky actors got flushed out with the events of 2022. The market seems to believe that inflation is at or near its peak, which they suspect would get central banks to slow the pace of interest rate hikes.
Five key US economic indicators could influence Bitcoin (BTC) sentiment this week amid heightened bearish sentiment in the crypto market. In theory, it can be calculated by multiplying a coin’s current price by the total number of coins of its kind in circulation. If a coin is currently worth $100 and has a circulating supply of $30 million, we can get its crypto market cap by multiplying these two numbers—in this case, it’s $3 billion. Jacob Joseph is a research analyst at CoinDesk with nearly five years of experience in the digital asset space.
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- His comments weighed further on risk assets, bringing the Nasdaq down 1.17% and the S&P 500 dropping 2.24% before the closing bell.
- This makes the anticipated data points particularly important for traders and investors.
- Some analysts speculated that the industry was in a bull market, with some even calling it a ‘supercycle’—a prolonged period of economic expansion driven by sustained demand and investor optimism.
- Five key US economic indicators could influence Bitcoin (BTC) sentiment this week amid heightened bearish sentiment in the crypto market.
As Galaxy notes, the entrance of prime brokers offering lending and leverage on these products is already expanding the market. Joshua de Vos has nearly a decade of experience in the digital asset sector and currently leads CCData’s award-winning research team. Previously, he was Head of Research at a leading digital asset portfolio manager, where he developed foundational investment strategies.
Investor sentiment and market trends
Regulators may choose to fight and overregulate crypto and if they do that, markets will react negatively. Alternatively, regulators may choose to foster innovation in the space while still setting up less prohibitive protected guardrails https://hor-tax.com/ and the markets would react positively to that kind of regulatory clarity. It really is too soon to say exactly what stance regulators will take. The first quarter offered a reminder that digital assets are no longer moving in isolation.
One of the clearest signs of this realignment comes from bitcoin dominance, which expresses bitcoin’s total market capitalization as a percentage of the market capitalization for all cryptocurrencies combined. This figure rose to 62.2% in Q1, its highest level since February 2021. Notably, this increase occurred despite a 26.9% drop in bitcoin’s total market capitalization from its January peak. Our latest chart of the week highlights this trend, showing how capital rotated out of speculative assets and into bitcoin as macro volatility and geopolitical uncertainty mounted. But we have to remind ourselves that swings like this are incredibly common in crypto. It is a volatile asset class, and we could easily see a pullback again.
The terms “bull market” and “bear market” date back to the 18th century. A bull charges with its horns upward, symbolizing rising prices, while a bear swipes downward, representing a market decline. Friday’s Producer Price Index (PPI) tracks inflation at the wholesale level. This US economic indicator offers crypto market participants insight into production costs that could trickle down to consumers. Shaurya is the Co-Leader of the CoinDesk tokens and data team in Asia with a focus on crypto derivatives, DeFi, market microstructure, and protocol analysis.
BTC.B
Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated. With Bitcoin sensitive to dollar strength, participants should watch how PPI shapes Fed expectations. A balanced reading might stabilize sentiment, but surprises could trigger sharp moves. Conversely, a softer PPI might ease inflation fears, supporting a bullish crypto outlook if paired with dovish Fed signals on Wednesday. Given Bitcoin’s April performance dropping below $75,000, this data could dictate its next move.
Why The Crypto Market CRASHED After This News?
And the thing is, if they regulate it and they’re too restrictive to it, crypto innovation will just flourish in other parts of the world. If they’re not restrictive enough, then there’s going to be more incidents of fraud and consumers will see issues increasingly in the United States. And there certainly are people in congress who are saying that we need to foster innovation in America.
Properly understanding the cryptocurrency market can be complex and take time, so that is why we make it simpler by focusing on key metrics like prices, market caps, and volume. For both beginners and seasoned investors, the price action is an essential indicator of the market’s overall health and activity. By aggregating data from top exchanges, COIN360 provides a detailed snapshot of the market caps, price movements, and trading volumes of over 5000 tokens. Yes, you can access live global cryptocurrency market data via the CoinMarketCap API, which provides real-time metrics like total market capitalization, Bitcoin dominance, and 24-hour trading volume. You can use the /v1/global-metrics/quotes/latest API endpoint to retrieve this data.
Volatility is almost certain, so participants must be ready for market reactions, especially as FOMC minutes will still be fresh in mind. Traders will, therefore, monitor whether claims exceed the previous week’s 219,000. Such an outcome would boost Bitcoin as a hedge against economic uncertainty. Traders and investors should brace for short-term price swings, particularly if the minutes deviate from market expectations priced in by the CME FedWatch. For those seeking the latest crypto news, we make sure to provide daily and weekly articles covering the most important happenings in the market, ensuring that you’re always informed of breaking updates and changes.