Bitcoin
prices bounced off the level of $30,000 per coin to drop to $22,000. A recent
breakthrough of the $30,000 level could be considered false if prices dive
below $27,000. These fluctuations are happening without any major upside
reasons for the market, meaning that cryptocurrencies are likely to return into
correction mode to test new lows.
Meme coins,
that are usually depicted from comical or animated memes and have little or no
intrinsic value, are rallying to two-year highs. Coins like Pepe coin have
easily crossed the $1 billion market cap threshold terrifying investors. Such
speculative activity is regularly associated with bearish reversals in Bitcoin
and manifests the end of the rally.
Investors
have finally recognised that the recession for the U.S. economy is not as close
as many have anticipated. So, a mindset of swift interest rates decline by the
Federal Reserve (Fed) prompted by a nearing recession could be wrong at the
moment. Recent strong labour market data in the United States signaled a longer
perspective for high interest rates, or even another hike for the Fed. That
resulted in rising yields for 10-year U.S. Treasuries, while large banks like
Goldman Sachs and Barclays reconsidered interest rates to remain at high
altitudes by the end of 2023. The banking sector is seen to be much stronger
and resilient to external shocks. Debt ceiling issues in the United States are
being largely exaggerated. Thus, the Dollar is seen to be on the recovery path
overshadowing any perspectives for a risky assets rally, including cryptos.