Nidhi Kolhapur
With Bitcoin and the crypto market back in the red, the world’s largest cryptocurrency has been swept up in a broader market selloff. The largest cryptocurrency by market capitalization has lost 1.25% in the last 24 hours, potentially pushing other digital assets into important support zones. At the time of writing, BTC is trading at $37,951.
The bulls in Ethereum are attempting to maintain the upswing at a critical level. They must strive to hold the dynamic support and the bulls must return over the $3000 mark for a solid reversal. This could signal the start of a trend reversal for ETH. Solana has lost 16 percent of its value as a result of a network failure, making it the worst-performing cryptocurrency by market size.
BTC, ETH, and SOL to Restart the Upward Climb?
By the end of the year, according to Bloomberg Intelligence analyst Mike McGlone, blue-chip crypto assets will outperform other commodities.
McGlone argues that after the US stock market sinks more, leading digital assets Bitcoin, top smart contract platform Ethereum, and ETH killer Solana (SOL) will restart their climb, according to a new interview on the Scott Melker podcast.
He believes that a more severe equities market correction will push the Fed to reconsider its stance on monetary tightening, resulting in bull runs in risky assets such as cryptocurrencies.
McGlone believes that the Federal funds futures rate, which captures investor expectations for where the official federal funds rate will be at contract expiration, might serve as a “bottom indicator” for the crypto market. A reversal in sentiment may be beginning, according to the analyst, if investors hit a peak level of caution on the Fed funds futures.
“The Fed will keep jawboning, until the stock market – that’s the number one indicator, until [the stock market] goes down enough that [it] makes the Fed pause…That’s when I think we’re going to see what’s already happening, accelerate. Bitcoin, Ethereum, and I don’t know the other ones, maybe Solana, to resume their outperformance trends, and they’ve already done a good job.”
