The market for cryptocurrencies has been experiencing a rough start to the year with the price of Bitcoin (BTC) leading to much of the main cryptocurrencies from the market to a bear market rather than a high towards $ 100,000.
Andrey Nousi, CFA and CEO of Rose Finance, a financial advisory and education company, noted that the recent drop in the price of BTC came about due to the negative context of the US economy as the minutes of the FOMC, which is like the US Copom, of its December meeting, were released.
“The members of the FED had already said that inflation is strong, that the labor market is squeezed and that it is difficult to hire, that the economy is growing and that it is necessary to reduce aid. They also spoke of the need to raise the interest rates ahead of schedule. In addition, pressures on logistics chains will continue this year, which should lead to increased inflationary pressure. As a result, the US stock market has fallen, which has an impact on the cryptocurrency market. The impact in cryptocurrencies is intrinsically linked to what happens in the US stock market. If the US stock market crashes, fatally the cryptocurrency market will also crash, “he says.
However, with the fall, the bears succeeded in creating a hiding place to catch the bulls by surprise and lead to big selling in the price of BTC. With this, BTC price action has turned bearish with both Japanese candlestick charts and two point-and-figure charts showing downside dangers.
According to the analyst Jonathan Morgan, BTC needs to move higher and back to $ 46,000 to hold the value as support, as a drop to the $ 43,000 to $ 44,000 zones could lift the selling pressure and push the major cryptocurrency below $ 35,000.
BTC / USD daily Ichimoku chart
Axie Infinity
As Bitcoin struggles not to disappoint investors and fall below $ 40,000, analysts believe that the Axie Infinity metaverse (AXS) could break the bearish pattern of the market and rise as much as 80%.
“As the capital inflow for play-to-earn games increases, the price of Axie Infinity tends to rise. The token could rise 80% with increased adoption and plans for 2022,” notes the analyst Ekta Mourya.
Mourya notes that Sky Mavis, the developers of the game and the Axie Infinity ecosystem, have revealed their roadmap for 2022. Plans for the play-to-earn gaming ecosystem have fueled an optimistic narrative for Axie Infinity.
New features include land sales and a new 3D metaverse. In addition, Sky Mavis has announced seasonal rewards for those who complete the game, which can attract new users to the game, which implies an increase in the collection of tokens.
The analyst indicates that this news, coupled with the hype around the metaverse, should lead AXS into a major uptrend, but not before a pullback that will send the crypto asset tumbling.
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