Crypto open trend in Asia is flat but bitcoin-BTC price is expected to hit $25.2k soon

Good morning Here’s what happens:

Prices: Fairlead Strategies’ Katie Stockton sees a drop to around $25,200 for Bitcoin and a short-term pullback for Ether, but sees potential for Ether to outperform Bitcoin in the short-term.

Insights: Bitcoin needs a good story before it can keep going higher, says Brent Xu, CEO of Web3 bond market platform Umee. What will this narrative be?

All Eyes On Ether As Bitcoin Pushes Down?

According to CoinDesk market data, bitcoin is currently trading at $27,618, which is virtually unchanged. Ether is down 0.4% to $1,838.

Katie Stockton, Founder and Managing Partner of Fairlead Strategies, recently appeared on CoinDesk TV, saying that the overall crypto market likes the lower CPI numbers but doesn’t expect the price to spike just yet.

“From a technical point of view the market seems to like it, we see a positive reaction. But in reality, the action is rather insignificant considering both bitcoin and ether have been up recently,” she said. “They recently fell below their 50-day moving average.”

Stockton expects Bitcoin to fall back to its base breakout point of around $25,200. In the medium term, however, she still sees an upward trend.

That lower price should serve as a good entry point for new investors, she argues.

Stockton also sees a short-term pullback for Ether as it too has surpassed its 50-day moving average. However, she anticipates that Ether could outperform Bitcoin in the short-term.

“We anticipate a downtrend for Ether regardless of today’s activity, with support levels around $1,755,” she said. “This could represent a natural point for stabilization as oversold conditions could lead to a rebound.”

An asset market in search of a good story

bank substitute? inflation hedge? Gold alternative?

Bitcoin has yet to find fresh ground that will push the price out of its week-long range of around $25,000 to $30,000, said Brent Xu, CEO and co-founder of Web3 bond market platform Umee, on CoinDesk TV’s All About Bitcoin show.

“Bitcoin is trying to find its next narrative,” Xu said.

Bitcoin price swings on Wednesday highlighted Bitcoin’s vulnerability to the events of the past few weeks. The largest cryptocurrency by market cap rose on a slightly benign consumer price index (CPI), which showed inflation rising a less-than-expected 4.9% in April. But BTC fell around midday on internet rumors of a $320 million US government bitcoin sell-off, before bouncing back as markets ignored hearsay.

Xu pointed out that price increases linked to a mini-series of US bank failures in April and earlier this month failed to spur sustained price momentum.

“We have seen a number of banks destroyed and there is a narrative that Bitcoin will be a new banking system,” he said. “Unfortunately, that narrative still hasn’t been fully substantiated. Bitcoin fluctuates during existing market cycles and we have yet to reach this bullish momentum cycle.

He added: That will probably happen next year. For the rest of this year we will see further price fluctuations.”

Xu believes the steady decline in inflation from a peak of 9.1% last June will allow the Federal Reserve to reconsider the steady policy of tightening interest rates that critics of the Federal Reserve blamed for the impending bank collapse and other economic woes make. “There is a possibility that we will see some potential cuts,” Xu said, adding that some analysts expect rate cuts totaling 75 basis points (bps) in the coming months.

“You need to take a good look at what all those rate hikes have done and also consider the possibility of a deeper recession in the near future,” he said.

Xu said liquidity is important for crypto markets to thrive. Market makers Jane Street and Jump Crypto recently exited crypto trading in the US, and other firms that are focused on crypto, or at least have a keen interest in it, have also scaled back operations or are threatening to move overseas.

But Xu said that “these markets will find a way to exist if not within US borders,” adding that “institutional liquidity will flow.”

“It’s just about building the right narrative. The next narrative has to be some major innovation, like the Shanghai Shapella upgrade, or some sort of new L-2 (Layer 2), or a major improvement to the Bitcoin blockchain. And when we see those, we will see more liquidity and action (in the markets).”

Bitcoin (BTC) edged higher after annual US inflation slowed to 4.9% in April from 5.0% in March, while economists had forecast 5.0%, according to the Bureau of Labor Statistics. Fairlead Strategies founder and managing partner Katie Stockton shared her analysis of the crypto markets. Asobitcoin President Will Hernandez was also on First Mover to provide an update on the Bitcoin experiment in El Salvador. And Fan-Owned Sail Team LLC Founder, David Palmer, shared his thoughts on creating a successful SailGP team with a passionate fan and owner base.

Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers