Bitcoin, Ether, Terra Outlook: Bearish
- Bitcoin and Ether cling to psychological levels
- Investors remain cautious ahead of FOMC
- Risk sentiment shifts to safe-haven assets (for now)
In the midst of an tumultuous geopolitical backdrop and heightened inflationary pressures, risk appetite has continued to sour, weighing on cryptos and equities alike.
Although Bitcoin and Ether have shredded over 50% of gains since peaking in November last year, the collapse of Terra (Luna) and a softer Dollar have further assisted in the catalyzation of price action.
With a range of high impact economic data expected to be released throughout next week, Bitcoin (BTC) and Ether (ETH) may remain vulnerable at their respective psychological levels.
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With central banks clamping down on inflation (through interest rate hikes and other quantitative tightening measures), stable coins remain under scrutiny after Terra wiped out $Billions from the total market capitalization of the crypto sphere.
However, at the time of writing, Bitcoin continues to eye the $30,000 handle while Ether aims to gain traction above $2,000.
If the upcoming data proves to surpass expectations, there is a probability that digital assets may benefit from a more optimistic outlook.
On the contrary, if price pressures remain on the rise, a break below $26,000 (BTC) and $1,700 (ETH) could lead to a resumption of the bearish move.
— Written by Tammy Da Costa, Analyst for DailyFX.com
Contact and follow Tammy on Twitter: @Tams707