Refined “RBC-Crypto” Experts appreciated the prospects of crypto market against the backdrop of geopolitical events in the Middle East, and also pointed to the factors that should be observed in the near future.
Strong trend
The volatility in the crypto car of the last few days has not changed the main trend to increase the prices of crypto assets, said Alexander Kraiko, a leading analyst in CIFRA MARKETS cryptrocerator.
“Such geopolitical bursts often cause short -term corrections, but do not become reversal points. This time, the situation developed exactly by analogy with the previous exacerbations between Iran and Israel – the market quickly bought a decrease, and the trend remained valid, ”he said.
But even despite the preserved global bull trend, a powerful increase in prices, according to experts, is not expected. Basically, they agreed that Bitcoin would remain to bargain in a wide range.
“Against the backdrop of the geopolitical and economic uncertainties of the cryptocurrencies, it will most likely remain in a wide lateral range. Bitcoin will continue to bargain in an expanded range of $ 102–107 thousand. Ethereum may try to return to $ 2.6-2.7 thousand after a sharp fall to $ 2.3 thousand at the beginning of the week, ”said Ryan Lee, a lead analyst at Bitget Research.
This week should expect increased volatility, says the co -founder of Encry Foundation Roman Nekrasov: “If the tension does not intensify, Bitcoin can be held in $ 105 thousand. But any new blows or statements can again collapse the market, and then a cascading sales that will lower the BTC again by $ 95 thousand can take place.”
Altcoins
In these uncertain geopolitical conditions, Kraiko also saw opportunities for the growth of altcoins. As a trigger, he pointed to a high level of bitcoin domination: “Yesterday the maximum of bitcoin dominance was updated since the beginning of 2021-the BTC took more than 65% of the total crypto capitalization. However, today against the backdrop of price growth [биткоина] A decrease in the dominance began. “
The market is located at an important technical level, according to an expert from which the dominance correction may well begin and this will open a window of opportunities for the strong growth of altcoins.
The Bitcoin dominance index, the share of bitcoin in the market or the Bitcoin domination is the ratio of market capitalization of bitcoin to the market capitalization of the entire cryptocurrency market. Among the factors that affect this metric: a change in bitcoin price, altcoin assessment, growth in the use of stablecoins, market conditions, as well as the emergence of new cryptocurrencies.
Macroeconomics
An important factor for further price movement is macroeconomic data from the USA. And in this area, experts see more positive signals.
“Data from the USA is also important – inflation and consumer activity. They will affect expectations at the rate of the Federal Reserve System (Fed) and, accordingly, the behavior of investors in crypto actures, ”Nekrasov noted.
Lee also noted that the markets will monitor inflation data, the level of unemployment and consumer activity, “which can affect the expectations at the Fed’s rate.”
As a decision on the rate of the Fed will affect the cryptocurrency market. What you need to know when fulfilling your tasks, the Fed adjusts the monetary policy by reducing or increasing the basic credit rate, which can influence all financial and trade markets. When the economy is stable, the Fed can begin to soften monetary policy, that is, reduce the credit rate, thereby creating a more attractive climate for investors. And vice versa, in conditions when crises arise in the economy, the Fed may tighten monetary policy, which, in fact, worsens the investment climate and, as a result, negatively affects trade markets.
It is also worth watching the rhetoric of representatives of the Fed. According to Kraiko, this can serve as an additional bull factor: “The market is already discussing the possibility of the first reduction in the rate in July. And cheap money is fuel for risky assets. First of all for altcoins. “
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Source: Cryptocurrency
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