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Cryptocurrency Market: Recession fears halt the bounce.

Analysts do not see many encouraging signals to support a cryptocurrency boom. This article guides you through the news and highlights the day’s cryptocurrency market.

On Monday afternoon, Bitcoin (BTC) was trading at about $20,800, giving up some of its previous week’s gains.
The biggest cryptocurrency by market capitalization is maintaining its position above the crucial $20,000 threshold, but experts are pessimistic about the chances of a long-term uptrend.

Cryptocurrency Market
Image Source: Coindesk

Simon Peters, a crypto analyst at EToro, said that the same toxic combination of low business profitability, inflation, and central bank rate rises that harmed equities and other assets this year also damaged crypto. Prices of cryptocurrencies have a growing correlation with market indices, especially those with a significant technological component. According to senior market analyst Craig Erlam of Oanda, the fizzling bitcoin rallies indicate a general lack of optimism toward riskier assets.

Thoughts of the problematic cryptocurrency market lender Celsius Network and the bankrupt cryptocurrency hedge firm Three Arrows Capital seemed to lessen on Monday. President and co-founder of the Prosper Trading Academy’s Howard Greenberg told CoinDesk that the Bitcoin Fear & Greed Index is decreasing.

Greenberg claimed, “observing the $22,650 level of the 200-week SMA (simple moving average) as the crucial price we must retake and maintain to witness a return to broader trading ranges across the Cryptocurrency Market.

On Monday, most other cryptocurrencies fell. The second-largest cryptocurrency market’s currency, Ether (ETH), was recently trading at a little under $1,200, down 2.3 percent over the previous day. One of the most significant losers among cryptocurrencies this week was Polygon’s MATIC token, which fell 9.8 percent.

According to the AAII short-term investor optimism poll, which market research company Macro Hive highlighted in a note, the threat of a recession dampened investor confidence in conventional markets, as optimistic sentiment plummeted to 19.4 percent and pessimistic view rose 11.4 percentage points to 58.3 percent.

The Nasdaq index dropped 0.8 percent, and the S&P 500 dipped by 0.3 percent.

According to Bloomberg, industrial metals like copper and tin are expected to experience their worst quarter since the 2008 financial crisis, highlighting the possibility of a recession.

We are in a bear market, and it’s a bear that’s probably going to keep roaring, “Macro Hive’s CEO and head of research, Bilal Hafeez, published in a newsletter.

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