Bitcoin falls to $19,200 as global financial markets tumble

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(Kitco News) – The bearish trend in the cryptocurrency market that began on Friday spilled over into trading on Monday as investors await a collection of inflation reports due later in the week that could offer a idea of ​​what comes next from the Federal Reserve.

Comments from JPMorgan CEO Jamie Dimon that the US economy is likely to slip into recession in the next six to nine months did little to improve investor confidence. The CEO pointed to runaway inflation, large interest rate hikes and the unknown effects of the Federal Reserve’s quantitative tightening policy as indicators of a potential recession.

Data provided by TradingView shows that Bitcoin (BTC) came under pressure in early trading hours on Monday, with bears giving the top cryptocurrency little breathing room amid a rush of selling that saw it drop to a daily low of $19,121 during the previous afternoon session. the bulls bid it above $19,200.

BTC/USD 4-hour chart. Source: TradingView

The ongoing battle for control was addressed by Kitco Senior Technical Analyst Jim Wyckoff, who noted in his morning update that “bulls and bears continue to battle for short-term technical control amid calmer, sideways trading. , with neither gaining much ground and still on an overall level technical playing field in the short term.”

The lack of dominance by bulls or bears combined with multiple headwinds and investor uncertainty “suggests more sideways and choppy trading in the near term,” Wyckoff suggested.

For crypto investors looking for more exciting price action, Michaël van de Poppe, founder and CEO of trading company Eight, He suggested they may have to wait another 48 hours or so, as the markets will most likely “remain flat until we get all the economic data on Wednesday and Thursday.”

After that, things could get more interesting due to the fact that Bitcoin’s Historical Volatility Index is now below 25. Previous instances where this has occurred have been followed by an increase in volatility.

As for where the price could head if volatility increased, the dominant consensus on crypto Twitter is that it will be to the downside, with most analysts providing a target between $17,000 and $18,800.

“I think we are stuck in the middle of the bear market with a final capitulation on the way,” Crypto Capital Venture founder Dan Gambardello said. said. “This means that we are getting close to the ultimate opportunity in crypto. Be prepared!”

Markets fall as global headwinds increase

Losses were widespread in global financial market trading on Monday as the CBOE volatility index (^VIX), which measures short-term expectations of market turmoil, soared above 32 while yields US Treasury bonds continued to rise.

At the close of the US markets, the S&P, the Dow Jones and the Nasdaq finished in the red, down 0.75%, 0.32% and 1.04%, respectively.

It was a similar story in the altcoin market, with the vast majority of tokens in the top 200 trading in the negative that day.

Cryptocurrency market daily performance. Source: Coin360

Notable exceptions to the wide-ranging downturn include a 27% gain for Huobi Token (HT), a 16.85% gain for Maker (MKR), and a 9% gain for Just (JST).

The total cryptocurrency market capitalization is now $934 billion, and Bitcoin’s dominance rate is 39.5%.


Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has gone to great lengths to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange of commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for loss and/or damage arising from the use of this publication.

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