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Bitcoin and Ethereum quotes have already reached the bottom of the current cycle, but a reversal of the market trend should be expected when FED will stop raising the key rate. This was stated by the co-founder of the cryptocurrency derivatives exchange BitMEX Arthur Hayes.
What do big macs, the fed, and #crypto have in common?https://t.co/C0msDGFsDB pic.twitter.com/E8hnPyOtLH
— Arthur Hayes (@CryptoHayes) June 1, 2022
Hayes stressed that inflation has a devastating impact not only on cryptocurrency companies, but also on players in the technology sector – it forces venture investors to reduce their balance sheets.
The ex-CEO of BitMEX drew attention to the fact that against the background of the collapse of the crypto market, the correlation between digital assets and the Nasdaq 100 index was broken. He also noted that for Bitcoin and Ethereum, each drawdown of the new cycle is still higher than the historical maximum of the previous one.
Bitcoin Market Cycles. Data: BitMEX.
Ethereum Market Cycles. Data: BitMEX.
“There may be an exchange that trades at a higher or lower intraday level than the one we observe. The point is to be generally accurate and approximately determine the range that can be considered a local bottom. For bitcoin, it’s $25,000-$27,000. For the ether – from $ 1700 to $ 1800, “Hayes wrote.
In mid-May, digital gold quotes fell through the level of $ 27,000, Ethereum tested $ 1800. In the same month, the first cryptocurrency recorded a record series of declines of nine weeks.
At the time of writing, Bitcoin is trading near $29,940, Ethereum is trading around $1820.
Hourly chart of BTC/USDT exchange Binance. Data: TradingView.
Recall, according to analysts at JPMorgan, the fair price of bitcoin is at the level of $ 38,000.
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