Due to a more unpredictable macro environment, Bitcoin price action has gone from $45,000 to $40,800 in just 48 hours.
After bulls failed to hold $42,000 for long, Bitcoin (BTC) bowed to new macro forces on March 4.
On Friday’s open, European stocks are down.
BTC/USD hit a low of $40,800 on Bitstamp Friday, according to data from TradingView, following a large options expiry event.
Worries about a nuclear power plant fire in Ukraine had hindered overnight performance, which had first shown signs of improvement.
Stock futures plunged as a result of the announcement, which was later questioned for its severity.
On the daily open in Germany, the DAX index fell to a one-year low, while the S&P 500 index had yet to begin trading.
“From its recent peak, the index has dropped 17 percent, far more than the S&P 500,” remarked market analyst Holger Zschaepitz.
“As the possibility of stagflation grows, investors are turning their backs on Europe. As a result, Europe’s recovery has again again failed.”
Commodities were also in the focus in Europe, with gas prices hitting fresh highs on Thursday. Inflation was also a factor.
Crypto is a cautious cryptocurrency. With considerable concern, Ed spelled forth the near-term outlook for Bitcoin.
“So, that 5th leg is a must. A further decrease from here would spell doom for the idea of a 5th leg….. We may skip the bullish sentiments and start hunting for shorts, especially if we lose 40k again “On the day, he issued a warning.
Inflation data no longer matters much for central-bank policy prognostications, evidently. Italian inflation surged to a record for a third straight month, to 6.2% in February vs the 5.5.% median estimate, data released this morning show. Yet 2-year Italian yields are plunging. pic.twitter.com/8I4ZcTaSh4
— Lisa Abramowicz (@lisaabramowicz1) March 1, 2022
“Bullish above 42, bearish below 40k,” says the trader.
Short-term altcoin performance hasn’t slowed down.
As Bitcoin continued to fall, altcoins suffered as a result, with emphasis focused on Ether (ETH) and its trend versus BTC.
The news that Metamask was planning to restrict ETH transactions in Venezuela in order to comply with government rules sank sentiment even further.
According to a blog post published Thursday, “By default, MetaMask accesses the blockchain via Infura, which is unavailable in certain areas due to legal compliance.”
Solana (SOL) lead the top ten cryptocurrencies by market cap in terms of daily losses, with SOL/USD down roughly 7%.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.