The leading cryptocurrency began the new day at $66,300, and as expected, the decline deepens following the all-time high (ATH). Even in bull markets, 30-40% losses are considered normal, so the recent movement can be seen as a reasonable pullback. So, what are the current expectations for altcoins and BTC?
Bitcoin (BTC)
Next week, the crypto investors are eagerly awaiting the Fed interest rate decision. The Fed meeting is crucial as we will see how Powell and the Fed interpret the latest data. The Consumer Price Index (CPI) and Producer Price Index (PPI) along with the latest employment figures suggest that the fight against inflation may not be as easy as expected in 2024.
Moreover, while investors initially expected a 150 basis point rate cut by early 2024, annual forecasts are diminishing as days pass. With incoming data popping the bubble of excessive optimism, the balancing of ETF net inflows makes the current pullback in Bitcoin price reasonable.
For Bitcoin, closures below $65,700 could trigger losses down to $62,800 and $60,400. This situation could accelerate panic selling in altcoins, leading to a larger series of losses in the crypto market.
Some experts expect a drop of up to 40% around the period of April 20th (before or after) as we approach the halving period. If the current price correction deepens and the price falls below $50,000, this historical event will have repeated itself.
Current State of Cryptocurrencies
While the cumulative value of cryptocurrencies was targeting $3 trillion, it has now retreated to $2.52 trillion. The volume has decreased by 26% compared to the previous day, dropping to $146 billion. This indicates we are experiencing one of the classic weekend downturns (decreased volume along with price).
On a weekly basis, the biggest gain was achieved by the newly introduced BOME Token. The price, which found buyers at $0.024, increased by 2550%, and the new meme coin joined the top 100 cryptocurrencies. ZRX and JUP also saw gains of over 80%. The hype in the Solana ecosystem is strong, especially with the intense buying and selling of newly introduced meme coins on Jupiter.
Altcoins among the top 100 cryptocurrencies like BSV, SHIB, OP, BTT, AGIX, and HNT saw losses exceeding 15%.
