“The market has been trading extremely risk on due to Federal Reserve’s policy that supported risk trades.
Bitcoin dropped sharply from $60,000 to $52,148 early Sunday, taking the cryptocurrency below the 50-day SMA for the first time since October.
Further, exchanges witnessed a net inflow of 20,370 BTC on Wednesday, the highest since March 20, according to data source Glassnode.
Bitcoin might regain some poise over the next few days, having seen a 25% drop since Coinbase’s debut on Nasdaq on April 14.
According to Delta Exchange’s Pankaj Balani, the market is likely to remain choppy till the end of June, and rallies could be short-lived.
“A deeper pullback is certainly possible.
According to Curtis Ting, Kraken’s managing director of Europe, the latest 25% pullback is typical of a bull market correction and the broader bias remains constructive.
Biden’s maiden speech to a joint session of Congress on Wednesday is expected to include a move to nearly double taxes on capital gains to 39.6% for those earning over $1 million.
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