- Bitcoin’s price appeared to be targeting the $27,000 level but was turned back by another drop in the American stock market.
- FxPro market analyst Alex Kuptsikevich stated that cryptocurrencies were seeing increased buying interest, but the stock markets were under pressure due to the gaining momentum of the dollar.
- Meanwhile, alternative tokens were some of the most volatile assets in the crypto market, as Bitcoin Cash (BCH) rose by 8%, and Maker’s MKR tokens, a DeFi protocol, increased by 7%.
Bitcoin’s price reversed its direction downward in tandem with the renewed drop in the American stock market: What does it need for an uptrend?
Bitcoin Price Needs a Catalyst for Uptrend
Over the past 24 hours, both Bitcoin (BTC) and Ether (ETH) remained relatively unchanged in both spot and futures markets, facing weak price catalysts and declining trading volumes.
Bitcoin’s price appeared to be targeting the $27,000 level early on Wednesday but was turned back by another drop in the American stock market.
FxPro market analyst Alex Kuptsikevich noted that cryptocurrencies were seeing increased buying interest, but the stock markets were under pressure due to the gaining momentum of the dollar, and this momentum didn’t last long. However, the swift end of this momentum dampened the bullish outlook.
Kuptsikevich, referring to the growth-driving forces potentially remaining a bear trap, suggested that it seems to offer a selling opportunity above, adding that the crypto sector might need banking issues or government payment power uncertainties to create sustainable growth momentum.
“The recent bond market moves indicate that such a thing is in the works,” said Kuptsikevich, stating that Bitcoin and other cryptocurrencies may “need financial chaos for growth.”
Altcoins Continue to Rise
Meanwhile, some alternative tokens were among the most volatile assets in the crypto market, with Bitcoin Cash (BCH) rising by 8%, and Maker’s MKR tokens, a DeFi protocol, increasing by 7%. The growth in MKR can be linked to an increase in wallet balances holding the token on exchanges, indicating demand. Smaller altcoins saw LOOM rise by 33%, BICO by 25%, and LEVER by 16%.
Recent statements from the U.S. Federal Reserve rattled broader markets in the U.S. by pricing in inflation fears, suggesting that interest rates could remain elevated for a while.
