Cryptos turn bearish; is Bitcoin headed for $25,000?
The cryptocurrency market turns bearish. Bitcoin (BTC) starts the day flat at $27,500 after dropping 0.3% in the last 24 hours, as does Ethereum (ETH): the largest altcoin in the market falls 0.4% in the last day to $1,830.
After celebrating the positive US inflation data with rises, digital assets have turned downwards. The April CPI showed that the rise in prices fell to 4.9% year-on-year, down from 5% in March, below the consensus estimate. Meanwhile, the underlying rate, which excludes food and energy, fell one tenth of a point to 5.5%, in line with expectations.
Speaking to 'CoinDesk TV', Katie Stockton, founder of Fairlead Strategies, noted that while cryptocurrencies tend to like lower CPI numbers better, they still don't expect a rise in major market equities. "From a technical perspective, the market does seem to like it, we're seeing a positive reaction. But really, the action is somewhat insignificant in terms of where both Bitcoin and Ether have traded up late. They recently broke down below their 50-day moving averages," she explained.
According to the expert, the reigning cryptocurrency could head towards the important support it presents at $25,000 in coming days, although she still sees an uptrend in the medium term.
According to Bolsamania's technical analyst, Cesar Nuez, we must pay close attention to the loss of this level as he does not rule out "an extension of the falls to the level of $22,000, levels where the 200-session average converges."
On the other hand, the memecoins craze seems to continue to slow down. Pepe coin (PEPE) has lost a billion in market capitalization in just five days, although data from the blockchain show that large holders continue to buy the token with the intention of inflating its price. Numerous analysts continue to warn that this cryptocurrency could be subject to a 'pump and dump' movement, as has already happened with hundreds of projects with similar characteristics, and stress that its collapse is imminent.
Likewise, Coinbase has informed its users about this cryptocurrency, which uses the image of Pepe the Frog, a popular internet meme that has been adopted by numerous far-right groups against the will of its creator Matt Furie. The exchange has described this meme as a "symbol of hate", which has provoked the angry reaction of numerous cryptomeme users.
It is also noteqorthy that Circle, issuer of the USD stablecoin (USDC), has adjusted its treasury reserves in an effort to reduce the risks related to the US debt. It should be recalled that Democrats and Republicans have not yet reached an agreement to extend or increase the debt ceiling of the world's leading economy, which could default on June 1.
In the rest of the market, there have been moderate falls. The most noteworthy movements are the decline of more than 1% in Polygon (MATIC), as well as the 1.7% rise in Polkadot (DOT) and 1.3% increase in Litecoin (LTC).