After a strong show in March and early April, the cryptocurrency market has been under heavy pressure! Investors are eager to move their funds into risk-averse assets as inflation numbers soar and the Fed stands ready to tighten market liquidity with interest rate hikes.
In the past two days, the crypto market has eroded a staggering $170 billion in investor wealth. At press time, Bitcoin and the broader crypto market are down 5% and have lost significant support levels.
Like CoinGape reportedBitMEX CEO Arthur Hayes expects a major crypto carnage by June 2022. Hayes cites the correlation between the Nasdaq 100 Index (NDX) and Bitcoin. He expects the Nasdaq 100 to hit 10,000 levels and even lower. This will no doubt spill over into the cryptocurrency market. BitMEX CEO expects Bitcoin (BTC) to reach $30,000 and Ether (ETH) to reach $2,500 by the end of June 2022.
On-chain data provider Santiment reports that FUD is growing in the cryptocurrency market, especially around Ethereum. He also points out that this could create some opportunities to buy the dip. Santimento reports:
There is a lot of #bearishness circulating in #crypto circles as market capitalizations continue to fall after the incredible March. #etherealin particular, he has seen a lot of #EVERYONE even before its price rally, and #buythedip opportunities may arise.
US CPI inflation likely to spike above 8%
On Monday, April 11, White House Secretary Jen Psaki said March inflation numbers could be "extraordinarily high" and called it "Putin's price hike." During her speech to journalists, Psaki saying:
โWe expect March headline CPI inflation to be extraordinarily high due to Putin's price hike. We expect a large difference between core and headline inflation, reflecting global disruptions in energy and food markets."
Based on market expectations, inflation figures could soar to 8.4%, a four-decade high. However, if the actual number rises, we can expect a more pronounced correction in the crypto market. Market analyst Lark Davis wrote:
โTomorrow's bad inflation data could already be discounted after the White House warning, that is if it's only like 8.5%. But if it breaks above 9%, then we are probably headed lower as it is worse than the market is expecting. IMOโ.
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