In the previous day, there hasn’t been much movement in the prices of bitcoin (BTC) and ether (ETH) due to weak price drivers and declining volumes in both the spot and futures markets.
Early on Wednesday, it looked like the price of bitcoin would once again reach $27,000. However, the advance was halted along with a new decline in the U.S. stock market.
While the purchase of cryptocurrencies surged, FxPro markets analyst Alex Kuptsikevich told CoinDesk in a daily note that equities markets were most under pressure since the dollar was strengthening. However, this momentum was short-lived, which dimmed bullish expectations.
According to Kuptsikevich, these development impulses offer the best opportunity to sell on the upside.
The trader went on to say that for the cryptocurrency industry to experience sustained development momentum, there may need to be banking issues or doubts about governmental solvency.
Bitcoin and other cryptocurrencies “need financial chaos for growth,” according to Kuptsikevich, who claimed that recent changes in the bond markets “show that something like this is brewing.”
Alternative tokens, such as bitcoin cash (BCH), which increased 8%, and Maker’s MKR tokens, which run the DeFi protocol, which increased 7%, were among the few volatile assets in the cryptocurrency market. An increase in wallet balances holding the token on exchanges, which indicates demand, may be linked to growth in MKR.
In the last day, the broad-based CoinDesk Market Index (CMI), which includes hundreds of tokens, increased 0.95%.
Recent remarks from the U.S. Federal Reserve indicated that interest rates would stay high for some time to come, which jolted broader U.S. markets as traders priced in inflation fears.