Crypto Market Review

Cryptocurrency Market Review

Yesterday, a bad inflation report was released in the US, which prompted the Federal Reserve to further raise interest rates. Several members of the Federal Reserve also gave speeches that added to the market’s negative sentiment. What surprised me about these speeches was the recurring theme that “it will be difficult to handle such high inflation without a recession, and it is dangerous to try to fight it slowly, so we can expect a recession in the third quarter of 2023.”

This was a big dose of negativity, but the market is still reacting moderately to all of this. The US stock market held up at acceptable levels. BTC and ETH broke through the resistance zone I have been talking about all week. This was especially critical for BTC, as breaking the $23,350 level opened the way down to February lows: $21,500-21,700.

Altcoins also fell nicely, some tried hard to resist and even pumped (such as BAKE), IMX and DYDX tried to rebound after the downward impulse, but their growth stalled by nightfall.

Basic Scenario

The pattern mentioned yesterday is that we will most likely return to Friday’s levels by Sunday night or Monday. Therefore, I do not expect a significant drop this weekend. I expect a wave of growth by Saturday evening. Nevertheless, many altcoins will continue to fall, as the pump in many tokens was inadequate in February.