Investors Remain Wary of the Inflation and Russian Invasion Plans, as the Crypto Market Holds Ground
“The crypto market has been holding its ground for almost a week now as the investors are trading cautiously due to fear of interest rate hikes by the feds to curb inflation and in fear due to the Russian plans for invasion into Ukraine. Both the macro-environment threat has stopped the price recovery this month to a price range of $43K to $45K.”
The crypto market has been holding its ground for a week now and Bitcoin the largest cryptocurrency by market cap is exchanging hands between the $43k and the $45K in the stated time frame. The major altcoins are also not showing any signs of moving as the crypto investors are trading cautiously amidst the latest fear of the Russia-Ukraine war and the continuous fear of the Fed’s interest rate hikes to curb inflation.
The whole world including the crypto industry is closely monitoring every news about the Russian troops on the Ukraine border and bad news can affect the market negatively. On the other hand, the Fed’s are closely monitoring the inflation rise and will soon increase the interest rates which will restrict the spending power of the people for the next few months thus having a negative effect on the risky asset classes such as stocks and crypto.
The experts believe that the buyers have to maintain a price floor above $40,000 to sustain the current uptrend that was seen after rising from $36k earlier this month. The crypto fear and greed index is showing neutrality in the sentiments with a value of 52 which means that investors and traders are waiting for the above-stated macro events to pass before pushing the market in the upward direction.