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bitcoin (USD-BTC), Ethereal (ETH-USD) and a number of major cryptocurrencies are faces more selling pressure on Monday morning as investors' risk appetite wanes.
As US stock index futures imply a weaker open, bitcoin (USD-BTC -2.9%) slides to $39.31K and ether (ETH-USD -3.7%) is going down to $2.93K. On a technical basis, while Bitcoin (USD-BTC) has been trading in a six-month cyclical downturn, "nowhere near an oversold reading" and the $35K support likely won't hold, said John Roque, a technical analyst at 22V Research, in a note to clients on Sunday, as reported by Bloomberg. "We continue to believe it will hit the $30,000 level," she noted.
It appears that investors are shifting their focus to safe-haven assets like gold (NOTE: CURRENT +1.0%) in a context of tightening monetary policy and geopolitical tensions. Gold is nearing $2K per ounce again, recently changing hands around $60 below its all-time high of $2,089 in August 2020.
About him last yearit is clear that Gold (NOTE: CURRENT) +12% has been outperforming Bitcoin (USD-BTC) -30%the stock market (SP500) +8%, and headline consumer price inflation +8.5% Y/Y, implying that the precious metal is acting as an efficient store of value amid economic uncertainty and downside risks. In an effort to tame inflationary pressures, the Federal Reserve is pivoting to aggressive policy, with expectations that the Fed will raise the policy rate aggressively this year and next.
Cryptocurrencies dipping the most include: solana (SOL-USD -4.4%), avalanche (USD-AVAX -4.7%), dogecoin (DOGE-USD -4.9%), Moles (DOT-USD -5.1%), Shiba Inu (SHIB-USD -5.1%), polygon (MATIC-USD -3.3%), NEAR protocol (NEAR USD -3.3%), litecoin (LTC-USD -6.1%), uniswap (UNI-USD -5.1%), Bitcoin Cash (USD-BCH -8.4%), stellar (USD-XLM -4.9%) and classic ethereum (ETC-USD -5.9%).
On April 14, SA contributor Dividend Seeker said that the correlation between stocks and cryptocurrencies has strengthened, which โlimits the effectivenessโ of Bitcoin as a hedge. in times of uncertainty.
