Some, But Not All, According to a Bitfinex Report Bitcoin Metrics are showing similar optimism as the stock market is showing after several inflationary interventions undertaken in the last few months.
Federal Reserve Governor Philip Jefferson recently said that the US central bank was committed to addressing high inflation while minimizing the adverse impact on the weakening US economy. there was a slight increase in jobless claims and GDP growth low in March Adding to concerns of a possible recession.
The prospect of a recession was further “reflected in the latest University of Michigan survey on consumer sentiment, which shows a decline in March – the first decrease in four months.”
positive bitcoin metrics
According to a Bitfinex report, despite some indicators showing signs of a possible slowdown, “the Fed’s favorite inflation gauge, spending, as well as earnings data for February saw declines, suggesting the Federal Reserve’s handling of inflation may be slow.” efforts are progressing.”
Stock market benefited the most from inflationary intervention and posted third consecutive weekly gain with the likes of Nasdaq Composite To gain over 17% in Q1 2023. This is despite the banking crisis and the changing interest rate outlook.
Like stocks, some bitcoin metrics have shown similar optimism. The report noted that “Non-zero balance addresses have increased and set a new record, but the number of active addresses and the number of daily transactions have declined. While this is not a bearish indicator, it suggests Given that the short-term market outlook is volatile amid range-trading conditions.”
On the other hand, open interest in Ether and BTC options on the CME reached an all-time high, indicating an increase in institutional activity. However, recent bitcoin price performance shows a close relationship with S&P 500 Raising concerns about increased price volatility and market stability.
calls for caution against over-leveraging
Bitfinex goes on to state that current market conditions “call for caution against over-leverage or increased risk appetite during this transition period in the crypto market.”
The crypto market has seen a number of events over the past two weeks, the most recent of which is the CFTC filing a lawsuit. binance, alleged multiple violations of the Commodity Exchange Act (CEA), including KYC and AML laws. litigation has caused significant Loss of market share of Binance Even though CEO Changpeng Zhao denied the allegations.
There have also been new developments regarding the FTX founder Sam Bankman-Fried case following the merger over bribery claims.
However, on the positive side, Michael Saylor’s MicroStrategy continued its bitcoin buying regime, increasing its holdings to 6,455 BTC. Tether’s USDT stablecoin Dominance also increased in March 2023, reaching an all-time high of 57.5% of the total stablecoin market share. Finally, the much awaited Ethereum’s Shepela Upgrade is scheduled for April 12, promising significant improvements to transaction processing, security and network efficiency.
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