🌤️ Mixed trading conditions lie ahead for the global crypto market in the next 24 hours, with bearish clouds lingering over Bitcoin, Cardano and Binance Coin, indicating further downside pressure. A bullish sun will, however, shine over Ether, Avalanche, Ripple’s XRP and many other altcoins covered by ATTMO.

🌥 Over a one-week horizon, bearish clouds are likely to sweep over most of the cryptoverse putting additional pressure on Bitcoin, Ether, Cardano… Dogecoin, Polkadot and Polygon are set to buck this negative trend as bullish sun is forecast to shine over them over the coming week.

Cryptocurrencies fell sharply ahead of US rate announcement and failed to rebound

The cryptocurrency trend was sharply negative over the past 48 hours, triggering liquidations exceeding $500 million over the past two days. The price of Bitcoin fell below $57,000, to a two-month low, as the Federal Reserve slashed  hopes of rate cuts any time soon.

Inflation remains stuck at high levels, the Fed’s Chairman, Jerome Powell said, after keeping the US’ central bank’s benchmark rate unchanged at a 23-year high. An interest rate cut have is not likely to take place before September.

Analysts now await the release of the US April job figures tomorrow afternoon. The number of new jobs created is expected to have slowed down to 243,000 compared to March.

The price of Bitcoin lost 4.3 percent to $57,500 over the past 24 hours, to a level not seen since the end of February, Trading View’s Bitcoin chart shows.

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Outflows from US ETFs, disappointing inflows in new Hong Kong ETFs

In the US, there were outflows from the spot Bitcoin exchange traded funds (ETFs) for the sixth consecutive day. “We have seen six consecutive days of outflows, and as the average entry price ($57,300) [by institutional investors] approaches the current spot price ($59,800), we will likely see more ETF unwinding. Since March 18, the ETFs have seen outflows on 58% of all trading days,” 10x Research said in its daily note.

“This will likely lower prices to our target levels and cause a -25% to -29% correction from the $73,000 top - hence our price target of $52,000/$55,000 during the last three weeks,” the crypto research company forecasts.

In Hong Kong, the first trading day of the spot Bitcoin and ETH ETFs approved proved to be a cold shower with only $12 million flowing into these new ETFs. Analysts had expected up to $300 million. The price of Ether fell 2.5 percent to $2,918 over the past 24 hours.

Binance founder sentenced to 4 months behind bars

The co-founder and former CEO of Binance, Changpeng Zhao (CZ), was sentenced to a four-month prison term by a judge in Seattle. This term is far lower than the three years requested by the prosecutors. He was also fined $50 million, a drop in the ocean as his personal wealth is estimated at around $42 billion. The price of Binance Coin dipped 4 percent to $548 over the past 24 hours.

Ripple teams up with HashKey & Japan’s SBI Group

Ripple, HashKey and SBI Group will integrate the capabilities of the XRP Ledger (XRPL) into various business processes, beginning with supply chain finance in Japan. HashKey has already successfully done so in China. The price of XRP put on 1.8 percent over the past 24 hours.

Crypto poised to take huge leap into the mainstream if US stablecoin bill passes

“Crypto is poised to take another huge leap into the mainstream” conditional on the passing of stablecoin legislation in the US, the CIO of Bitwise, Matt Hougan, writes in his weekly note. Two different stablecoin bills are currently under preparation.

“This would be the first piece of comprehensive crypto legislation ever passed by Congress. It would allow big banks like JPMorgan Chase to enter the space, moving them from foes to friends of certain aspects of the crypto/DeFi ecosystem. And millions of people and corporations would be introduced to the speed, low costs, and ease of use that crypto wallets, stablecoins, and blockchain-based payment rails offer,” Hougan said.

The market cap of the stablecoin market now exceeds $160 billion.

DISCLAIMER

ATTMO, a weather-inspired AI tool, makes cryptocurrency predictions. It also forecasts longer-term cryptocurrency trends. These forecasts are not trading advice; they are only decision support tools. They do not include information that is specific to the user; in particular they do not account for their personal risk appetite or market assessment. The forward-looking weather-inspired predictions part of this report may have changed by the time you read this edition of ATTMO Times. So always check the latest ATTMO predictions before making any investment decision.