Be careful, but it’s too early to be bearish on Bitcoin: Report | coindesk JAPAN | Coindesk Japan


Cryptocurrency exchange and lending platform Matrixport said it had been bullish on cryptocurrencies since mid-December, but signals from the US economy had forced it to be cautious.

A research report released on March 3 suggested reducing exposure by 50% should Bitcoin (BTC) price fall below $22,800, although it’s not yet time for all-out bearishness. is proposing. The largest cryptocurrency by market capitalization suffered overnight and was already trading around $22,400 at the time of writing.

The US stock market is starting to sell off again and bond yields are turning higher, the report says. Two-year Treasury yields are currently around 4.87%, up from 4.8% in November 2022, and the spread between 2-year and 10-year Treasury yields is -0.87%, described as an “unhealthy level.” ing.

A stronger US dollar is another negative sign, “spurring overhangs in restrictive monetary policy,” wrote Markus Thielen, head of research and strategy at Matrixport.

The daily trading volume of crypto assets has decreased from about $ 80 billion to about $ 60 billion, indicating that traders’ interest in the crypto asset market is declining. “The Paxos stablecoin, Binance USD (BUSD), has seen its market cap currently drop to $10 billion as the outflow continues,” the report states. A stablecoin is a type of crypto asset whose value is pegged to other assets such as the US dollar or gold.

The 60-day correlation between Bitcoin and the Nasdaq Composite Index is at its lowest level since December 2021, when the US Federal Reserve (Fed) began telling the market it was considering a rate hike. points out the report.

“This correlation suggests that while the downside of macro data appears to affect U.S. listed tech stocks, investors are encouraged to maintain their crypto exposure as they are able to hold onto future technological growth expectations. It’s about supporting

Matrixport says it remains confident that U.S. inflation will drop sharply this year, resulting in the Fed halting interest rate hikes and a rescue surge in cryptocurrency markets.

|Translation: coindesk JAPAN
|Editing: Toshihiko Inoue
|Image: Shutterstock
|Original: Bitcoin Bears May Still Be a Bit Early, Though Caution Urged: Matrixport

The post Be careful, but it’s too early to be bearish on Bitcoin: Report | coindesk JAPAN | Coindesk Japan appeared first on Our Bitcoin News.


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.