Is The Crypto Market Heading Towards Another FUD Crash Tonight?
Merchants from the crypto towns have been griping about the market trends off-late. Whilst worrying about the outcome of the Federal Reserve’s meeting. The traders are now anticipating a major crash to barge in by the end of the day. Meanwhile, the meter of the fear and greed index is currently weighing heavy at fear with a score of 28.
A proponent from the crypto town enlightens on how the market sentiments have modulated from being bullish to being bearish. Whilst citing a huge drop to occur by the end of the day. Interim, the market cap of the industry is currently at about $2.31 Trillion, which had earlier seen bottoms of $2.1 Trillion in the previous corrections.
Is the Industry Brewing Another Dump?
The protagonist from the crypto industry cites that the sentiments in the market have transitioned from being bullish to being bearish in a month’s time. The previous month traders were seen longing as they were convinced Bitcoin would run to $150,000. However, currently, the market is witnessing retailers liquidating their bags of holdings.
The prevailing panic and FUD are in view of the meeting being held by the U.S Federal Reserves. The FED is poised to take a major step with the interest rates, to curb the burdening inflation. And the FUD prevailing from the assumptions revolving around FED accelerating the tapering process.
While retail sentiments have been bearish as folks have been anticipating a potential crash to occur post the meeting. Whales have been seizing the opportunity by accumulating heavy longs. Wherefore the analyst is expecting the “Sell The Rumor, Buy The News” case to take place.
Collectively, the previous crash led to assets shedding 20-30% in gains. The space has also seen the House committee Financial Services Chair, Maxine Waters calling six CEOs of various crypto firms to testify about the industry. Meanwhile, bears have been making hay while the sun shines by suppressing the price below $50,000. We can expect the crypto space to rebound despite the odds as the inflation numbers, alongside the debt, have been soaring higher.
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