Bitcoin (BTC) succumbed to the new macro pressure on March 4 after the bulls failed to hold on to $42,000 for long.
BTC/USD hourly candlestick chart (bit stamp). Source: Trading View
European stocks fall at the open on Friday
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD bottomed at $40,800 on Bitstamp on Friday after the major options expiration event.
Fears of a fire at a nuclear power plant in Ukraine hampered the late-night show, which first showed reconstruction.
Stock futures tumbled on the news, which was later questioned in earnest.
In Germany, the DAX index reached an annual low at the opening of the day, and the S&P 500 has not started trading yet.
“Since the last peak, the index has lost 17%, which is significantly more than the S&P 500,” said market observer Holger Scheppitz.
“Investors are turning away from Europe as the risks of stagflation increase. This means that Europe’s comeback has failed again.
In Europe, the focus was also on raw materials, with gas prices hitting new highs on March 3. The same thing happened with inflation.
Therefore, a cautious Crypto Ed left the short-term outlook for Bitcoin with some trepidation.
“So this fifth stage is really necessary. A deeper pullback from here is bad news for the possibility of this fifth stage…especially when we lose 40K again, we could lose the upside and start looking for a short one,” he warned of the same day.
“My rise is above 42, my bearishness is below 40K.”
There is no disruption to the performance of cryptocurrencies in the short term
Altcoins generally suffered as Bitcoin continued to slide, with attention focused on Ether (ETH) and its direction against BTC.
Related: Bitcoin Is A ‘Good Bet’ If The Fed Continues To Loosen To Avoid Recession Analysts
ETH/BTC hourly candlestick chart (bit stamp). Source: Trading View
Sentiment, which is already struggling, was exacerbated by news that Metamask is preparing to block ETH transactions in Venezuela in order to comply with government regulations.
“By default, MetaMask is gaining access to the blockchain through Infura, which is not available in any jurisdiction due to legal compliance,” said a blog post on Thursday.
Solana (SOL) tops the top ten cryptocurrencies by market cap in terms of daily losses, with SOL/USD down nearly 7%.