Monday, May 29

Crypto rises in the heat of the Fed: What to expect this week? By

By Laura Sanchez – The cryptocurrency sector tries to recover positions lost in recent days. He and he are approaching double digits of raises.

Bitcoin rises from Monday’s low of 32,983, as investors expect the Federal Reserve’s rally, which takes place today and tomorrow, to set the tone to move away from its dovish monetary policy initiated during the pandemic.

Nonetheless, the crypto is trading 47% below the high of $68,991 marked last November, according to data from CoinDesk.

The recent drop marks the second worst sell-off since Bitcoin’s bearish cycle from 2018 to 2020, according to research firm Glassnode and echoes MarketWatch. The drop is only dwarfed by the 54% reduction in July 2021 from the sector’s April highs.

Cryptocurrency investors are also concerned about the White House’s next moves on crypto regulation, as the Biden administration is set to release an initial government-wide strategy for digital assets next month, according to a report from Bloomberg on Friday citing people familiar with the matter.

Recent sell-off is “disproportionately driven” by short-term holders, notes MarketWatch.

However, experts see more room for bearish sentiment in the sector. According MarketWatch, Although analysts are seeing more buying pressure, they would like to see more robust demand before becoming convinced that we are entering a sustained move higher.

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