After a strong show in March and early April, the crypto market has come under severe pressure! Investors are keen to move their funds to risk-averse assets as inflation numbers are soaring high and the Fed is all set to tighten market liquidity with interest rate hikes.
Over the last two days, the crypto market has eroded a staggering $170 billion in investors’ wealth. As of press time, Bitcoin and the broader crypto market are 5% down losing major support levels.
As CoinGape reported, BitMEX CEO Arthur Hayes is expecting a major crypto carnage by June 2022. Hayes cites the correlation between the Nasdaq 100 (NDX) index and Bitcoin. He expects Nasdaq 100 to touch 10,000 levels and even lower. This will certainly spill over to the crypto market. The BitMEX CEO is expecting Bitcoin (BTC) to touch $30,000 and Ether (ETH) to touch $2,500 by the end of June 2022.
On-chain data provider Santiment reports that there’s growing FUD in the crypto market, especially around Ethereum. It also notes that this might create some buy-the-dip opportunities. Santiment reports:
There is a whole lot of #bearishness circulating in #crypto circles as market caps continue to drop following the incredible March. #Ethereum, in particular, has seen a ton of #FUD even prior to its price rally, and #buythedip opportunities may arise.
U.S. CPI Inflation Likely to Shoot Above 8%
On Monday, April 11, White House secretary Jen Psaki said that the March inflation numbers could be “extraordinarily elevated” calling it the “Putin price hike”. During her address to reporters, Psaki said:
“We expect March CPI headline inflation to be extraordinarily elevated due to Putin’s price hike. We expect a large difference between core and headline inflation, reflecting the global disruptions in energy and food markets.”
As per the market expectations, the inflation numbers could soar to 8.4% making a four-decade high. However, if the actual number turns higher, we can expect a steeper correction in the crypto market. Market analyst Lark Davis wrote:
“Tomorrow’s bad inflation data could already be priced in after the warning from the White House, that is if it is only like 8.5%. But if it is anything over 9%, then we are probably heading lower as that is worse than the market expects. IMO”.