Cryptocurrencies Tumble, Analyst Predicts Range Trading

Major Coins Suffer Losses

On Wednesday night, major cryptocurrencies saw a substantial decline as investors appeared to overlook sector-specific and macro-events that had earlier driven Bitcoin’s price beyond $30,000. 

CryptocurrencyGains +/-Price (Recorded 9:30 p.m. EDT)
Bitcoin BTC/USD-2.38%$29,135
Ethereum ETH/USD-1.36%$1837
Dogecoin DOGE/USD-4.20%$0.074

What Happened: 

The abrupt change happened despite news that Fitch had downgraded the U.S. 

Treasury bonds and MicroStrategy’s plans to buy more Bitcoin initially supported the rise before causing it to fall below $29,000.

If any of the spot bitcoin ETF applications submitted in mid-June by well-known financial services organizations like BlackRock are approved by the Securities and Exchange Commission (SEC), the present market trend, which is predicted to persist, might alter. 

The SEC’s decision-making timeline is not yet known.

Top Gainer (24 Hour)

CryptocurrencyGains +/-Price (Recorded 9:30 p.m. EDT)
XDC Network+17.79%$0.0774

The current value of the global cryptocurrency market is $1.17 trillion, down 2.14% from yesterday.

Nasdaq Plummets on U.S. Rating Downgrade

On Wednesday, stocks fell, with the Nasdaq Composite having its worst day since February. 

This was principally brought on by Fitch cutting the United States’ long-term rating, which reignited the risk-off mood.

While the S&P 500 had a drop of 1.38%, the Nasdaq Composite index experienced a major decrease of 2.17%.

U.S. Rating Downgraded by Fitch

On Tuesday night, Fitch Ratings decided to downgrade the United States’ long-term foreign-currency issuer default rating from AAA to AA+. 

This downgrading was justified by the projected budgetary decline over the following three years.

It’s important to remember that the last significant downgrading by a rating agency in the United States occurred in 2011 when Standard & Poor’s lowered the rating from AAA to AA+.

Analyst Notes:  

“As traders wait for any details about a US spot Bitcoin ETF, Bitcoin is fluctuating above the $29,000 mark. We’ve already watched this movie… 

Bitcoin is being included in MicroStrategy’s portfolio by Michael Saylor.  

Range trading may continue for a little longer since new capital hasn’t yet entered the crypto sphere, according to OANDA Senior Market Analyst Edward Moya.

Bullish Signal

Crypto researcher Michael Van de Poppe points out the significance of maintaining current levels by noting that the overall market value for cryptocurrencies is still higher than the 200-Week MA and EMA. 

In addition, it is important to note that since the bottom in November 2022, we have seen a string of higher lows, which point to the beginning of a potential new bull cycle.

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