Market picture
The crypto market lost 3.2% over the past day, dragged down by the institutions' favourite instruments: Bitcoin (-4.5%) and Ether (-4.3%). Other top altcoins range from -4% (Polygon) to 0% (XRP). The Cryptocurrency Fear and Greed Index fell to 49 (neutral), its lowest level in two months.
Bitcoin is trading at $26.3K, its lowest level since March 17, losing over 15% from its peak last month. The local technical pattern offers little reason for optimism. Bitcoin fell well below its 50-day moving average at the beginning of the week. By the end of Thursday, it was below $27.5K, the support line for the last two months. Friday's early morning drop took BTCUSD below the 61.8% Fibonacci correction level from the rally off the March lows. In other words, we see more than just a correction of this latest growth impulse.
Bitcoin's return to $25K looks like a real prospect in the coming days. The bears will have their work cut out for them here, as some oversold conditions will have built up by then. The $25K level is also significant that Bitcoin did not breach between the middle of last year and the middle of March. Now it has every chance of becoming an equally reliable support.
News background
Crypto assets could become a hedge against inflation, according to rating agency S&P Global. However, the history of the crypto market needs to be longer to prove this hypothesis.
The New York State legislature has begun considering a bill allowing dollar-pegged stablecoins to be used as a legal means of paying bail for defendants.
Former SEC official John Reed Stark has called on US financial regulators to ban crypto-related companies from offering Tether (USDT) stablecoins. According to him, the issuer of the USDT stablecoin could be the next domino to fall.
According to documents filed with the SEC, Franklin Templeton, which manages assets worth more than $1.4 trillion, plans to launch a second blockchain fund. The minimum investment in the fund will be $100K.
Circle, the issuer of the USDC stablecoin, has renounced US Treasury securities maturing after May 31 in case of a US default on government debt.
Elon Musk released a meme featuring NFTs from the Milady collection, which resulted in a 2600% increase in sales of anime tokens and hundreds of times price increase of the Milady Meme Coin.
This article was written by FxPro’s Senior Market Analyst Alex Kuptsikevich.
