Fear weighs on crypto market, but there is still small chance of help from traditional markets
Fear on the downside of the stock market forced Bitcoin to choose a downward direction last night. Nevertheless, there is still enough room for rather good news, because the most important index of the American stock market, the S&P 500, is still above $3,900, despite the fact that at the moment it has reached $3,883. As for now, the stock index of the world’s largest companies is at a crossroads.
The growth scenario is possible under the conditions of an urgent launch of the Fed’s “money printer.” But here again, the accomplishment of important macro events will be needed, whether it is the beginning of a U.S.-China military conflict in the Pacific region or the emergence of a margin call of banks and systemically important companies.
Harsh reality for traditional and crypto markets
Further declines are more likely due to fundamental factors. The Fed continues to belatedly fight inflation by raising its key rate and conducting tight monetary policy in general. There are fewer dollars in the system, and every participant in it suffers. Thus, total assets on the Fed’s balance sheet fell by $64 billion in August.
In summary, the S&P 500 is poised to dip into the area around $2,700 unless the money printer starts up or something extraordinary happens on the global financial market. For Bitcoinwhich has found local support around $18,500, this will mean further downfall, as for the crypto market in general.
Compiled by Metacrunch. Metacrunch is a news complier and aggregator platform which aims to spread awareness and updates on Metaverse, Web 3.0 Technology, Blockchain, Cryptocurrency, NFTs, Airdrops and many more.
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