Markets rallied after suffering brutal losses in the last days.
Crypto markets finally bounced going into Friday, having suffered one of the direst patches in recent memory.
Although altcoin losses of over 50% in a week
will not be recouped quickly, Bitcoin rallied back above $30,000 — providing the springboard for a strong altcoin bounce.
Layer-ones like Cardano (ADA
) (up 23% over the last 24 hours at the time of writing) and Polkadot (DOT
) (up 34%) saw the biggest gains among the top cryptocurrencies.
are up close to 7% after the fallout from the UST/LUNA collapse
wiped out virtually all gains from 2021.
reports on-chain data that indicates declining BTC balances on exchanges, suggesting traders are happy to take their coins off-chain (where they cannot be sold). Bitcoin remained in the "Extreme Fear" zone of the Fear and Greed Index
Traders are now wondering whether "the bottom is in" or whether more pain has just been delayed.
at virtually zero, one systemic risk factor has been taken out for Bitcoin — but macro concerns remain. A higher-than-expected Consumer Price Index print for April suggested that while having peaked, inflation is bound to stick around for longer. That is bad news for risk assets like Bitcoin, which could shed more value as investors with decreasing risk appetites rush into bonds.
Arthur Hayes, one of the most well-respected figureheads in the crypto industry, revised his price target for BTC and ETH down
to $20,000 and $1,300, respectively. Similarly, analysts suggest that a classic 80% drawdown from its all-time high (as happened during previous bear markets) would take Bitcoin down to $14,000.
Traders can breathe a sigh of relief, but it seems they have no time to relax just yet.
This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators.
This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice.
The views and opinions expressed in this article are the author’s [company’s] own and do not necessarily reflect those of CoinMarketCap.