The Bitcoin (BTC) price reached $ 40,000 on April 22 after a sharp drop in equities triggered the recent rise.
Hourly candlestick chart BTC / USD (bit stamp). Source: Trading View
Bitcoin loses $ 3000 when US stocks fall
Data from Cointelegraph Markets Pro and TradingView showed that the BTC / USD pair fell below $ 41,000 on Friday after fluctuations during the last trading session on Wall Street.
On Thursday, US markets reacted strongly to the “increase” in government interest rates, with the Nasdaq 100 index down 2% and with the strongly correlated cryptocurrencies.
Meanwhile, Bitcoin cards lost more than $ 3,000 in a matter of hours, climbing to around $ 39,800 before recovering.
Meanwhile, another macroeconomic driver came in the form of the Federal Reserve’s balance sheet, which is finally beginning. Measures to combat inflation, the highest in forty years, have also put pressure on equities and risky assets that have long been priced but have not yet been seen in the data.
Market observer Holger Zerzbić summed up the day: “The Fed’s balance sheet expansion appears to have stopped shortly before it reached $ 9 trillion.”
Total federal assets fell by $ 9.6 billion to $ 8955.9 billion. The balance is now 37.3% of US GDP against 83% for the European Central Bank and 137% for the Bank of Japan. ”
Federal Reserve balance sheet. Source: Holger Zschaepitz / Twitter
As the Cointelegraph reported, the European Central Bank (ECB) has not yet shown signs of shrinking its balance sheet, which in itself is around 10 trillion dollars.
Fed Chairman Jerome Powell’s comments boosted nervous sentiment, suggesting another rise in the key interest rate in May.
As such, cryptocurrency traders remained cautious, with some noting that the weekly rise of nearly $ 43,000 was not accompanied by sufficient volume, suggesting that health was in doubt from the start.
“Low-volume pumps can not be trusted. Well-known Twitter retailer Roman warned against using them for distribution or to control sellers.
“Over the last six months, we’ve seen a lot of cases where small volume pumps fail with great resistance. Be careful.”
During this six-month period, the Bitcoin bulls failed to change the narrow trading area despite the many bounces in the area.
Ethereum risk goes back to $ 2600
Meanwhile, Thursday’s catastrophe caused further pain for altcoins, with Ether (ETH) falling below $ 3,000.
Related topics: GBTC Premium is approaching 2022 high as the SEC requires approval of the Bitcoin ETF
Hourly candlestick chart ETH / USD (bit stamp). Source: Trading View
In classic mode, the top 10 cryptocurrencies at market value copied the weakness of Bitcoin with daily losses of around 4%.
For trader and analyst Rekt Capital, a new test of Ethereum made a big difference, opening the door to a deeper fall to $ 2600.