Why investors chose to stop buying risky assets and how this could affect the dynamics of cryptocurrencies in the near future
Last week, the price of bitcoin set a new record at around $ 69 thousand. After that, the asset went down and fell to $ 62.2 thousand. On November 14, the first cryptocurrency is traded at $ 64.6 thousand. altcoins in the coming days.
Aligning the Fed
At the moment, the financial markets have entered a period of calm, says Artem Deev, head of the analytical department at AMarkets. In his opinion, most investors follow the news from the Fed, so Bitcoin will be in sideways movement in the near future.
"Bitcoin in such a situation may rise in price a little or remain in the range of $ 62-64 thousand for a long time," the analyst noted.
Many investors chose to stop buying risky assets due to a possible tightening of the Fed's monetary policy amid record inflation in the United States, says Mikhail Karkhalev, financial analyst at Currency.com cryptoexchange. According to him, the situation on the markets will clear up after the official statements from the FRS.
“If the monetary policy remains the same, then with a high level of inflation, risky assets will grow again. If “aggressive” statements appear, the price will start to fall. Until the situation is cleared up, bitcoin will be in the range from $ 60 thousand to $ 66 thousand, "added Karkhalev.
99% of altcoins follow bitcoin
Alternative coins will repeat the dynamics of the first cryptocurrency, as investors now intend to reduce risky investments, the head of the analytical department of AMarkets warned. Financial analyst at Currency.com crypto exchange agreed with him. In his opinion, most altcoins will follow bitcoin, but some coins will be able to show powerful momentum.
“The decline in bitcoin is dragging 99% of the market. However, some altcoins can give good impulses against the background of any positive news within the project itself, "Karkhalev explained.