Market Fears Could Sink Bitcoin to $59k and Ethereum to $2.9k, Santiment Reports

Market Fears Could Sink Bitcoin to $59k and Ethereum to $2.9k, Santiment Reports
  • Bitcoin briefly dipped below US$60k due to inflation fears and market volatility, but quickly recovered as ‘buy the dip’ sentiment increased.
  • The launch of Bitcoin and Ethereum ETFs in Hong Kong had an unimpressive start, yet their long-term impact on crypto adoption remains significant.
  • Upcoming Federal Reserve and RBA meetings could influence market directions, amid mixed signals from the fear-and-greed index.

The crypto market truly is not for the faint of heart: Bitcoin has just dropped below the US$60k mark for the first time since February just to climb back up above that line at the time of writing. It’s a roller coaster and likely to continue for a bit, as a number of analysts suggest.

Related: ‘Bitcoin Jesus’ Roger Ver Arrested in Spain for Mail Fraud and Tax Evasion

Analysts at Santiment cite heightened fears of ongoing inflation as a driver of volatility. Despite this, they say dip buying may be back on the cards, as social mentions of BTC and the term ‘buy the dip’ are increasing.

‘Buy the Dip’ surge, source: Santiment

They added Bitcoin and Ethereum are the focus of heightened discussion among traders. Amidst widespread fear with Bitcoin falling to US$59.5K and Ethereum to US$2.9K, counter traders are capitalising on the situation to buy the dip, experiencing a slight recovery in the market.

April marked the first decline in the crypto markets since August 2023, ending a significant rally from October to March. Dennis Liu said in a post that the Chinese investing community anticipates the drop to go further down to US$50k, but disagrees with that notion.

The drop comes as the launch of the Spot Bitcoin and Ethereum ETFs in Hong Kong failed to impress on the first day of trading. However, analyst Pav Hundal told Crypto News Australia that simply judging the first day’s performance overlooks their strategic importance in promoting broader cryptocurrency adoption and integration into the global financial system.

Meetings of FOMC, RBA Awaited with Much Anticipation

Later today the US Federal Reserve is scheduled to hold its upcoming meeting. It is widely expected that interest rates remain untouched – which have been on a record high since July 2023. The Fed, like the Reserve Bank of Australia (RBA), tries to fight off sticky inflation without plunging the economy into a recession.

Locally, the big four banks are warning that rate cuts will not arrive before November. The RBA board is scheduled to meet next week.

Meanwhile, the fear-and-greed index is back in neutral territory, leaving investors guessing where the market moves to next.

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Fear-and-greed index, source: CoinMarketCap

Whether you believe it’s time to buy the dip or sell and wait until November – sticking to the old adage “Sell in May and go away” – understanding how to analyse crypto before you buy is easier with our comprehensive guide.

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