Tenth largest stablecoin USDN got depegged from $1 and lost 20% affecting the WAVES ecosystem.

Bitcoin
Bitcoin and Crypto Market Watch Tuesday, April 12, 2022 - 17:56

Bitcoin (BTC) experienced a sharp sell off yesterday bringing the price of BTC down to $40,000. The US government bond 10 year yield has broken out of a multi decade long downtrend that has pressured the equities market such as the NASDAQ. This roll over from tech stocks has affected BTC too. Adding to the woes, investors are awaiting the US consumer inflation data this week which is expected to pressurize the US federal reserve to hike the interest rates aggressively.

In this article, let’s break down the price actions of key crypto assets and short term outlook for BTC.

Bitcoin under waters

BTC started the week on a shaky note by losing 6% yesterday and went below the crucial $40,000 level intraday. Though the bulls managed to get BTC back above this level, the bearish sentiment had plagued the wider crypto market causing altcoins to backtrack their monthly gains. The first major resistance for BTC will come at the $42,000 level. Post which, exponential moving averages (EMA) at $43,100 and $46,600 are next in line for BTC to conquer. On the flip side, if BTC stays clear of the $39,200 level on daily closes, then it can act as short term support. $37,000 and $34,000 regions are next in line as support. BTC is currently trading at $40,200 with a 2% decline in the last 24 hours.

Ethereum and altcoins suffer

Ethereum (ETH) has pretty much followed the same kind of price action as BTC. ETH was quick to shed gains to trade below $3,000 intraday before regaining support from the bulls. ETH lost 5% overall before reversing at $2,950 which also happens to be the 50-day simple moving average (SMA). Securing a daily close above $3,000 will flip it to short term support and can muster enough momentum to break the EMA resistance at $3,080 and $3,100 subsequently. Losing the 50-day SMA can increase the selling pressure down to $2,800 region.

Most of the top 20 crypto assets excluding Bitcoin, Ethereum and dollar pegged stablecoins have retraced back by 6-14% to its major support levels in the last seven days. Terra (LUNA) is the biggest loser with a 27% weekly decline. Meanwhile Dogecoin (DOGE) has widened the market capitalization gap by $6 billion from its rival meme token Shiba Inu (SHIB).

A peculiar story of the week is about the stablecoin Neutrino USD (USDN). USDN, which is the algorithmic stablecoin of the Waves (WAVES) blockchain ecosystem, got depegged from its $1 mark as the underlying token WAVES plunged by more than 50% in the past 2 weeks. Though USDN has reclaimed the $1 peg, it has caused serious ramifications to the WAVES ecosystem.

Short term outlook for BTC

All eyes are on US inflation data as that will primarily dictate the future monetary policies. If the interest rate hikes are more aggressive than expected, market participants are more likely to shy away from riskier assets like tech stocks and crypto. For the short term, BTC will be subject to macroeconomic forces including inflation and can experience strong volatility in the coming weeks.

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Disclaimer: This article was authored by Giottus Crypto Exchange as a part of a paid partnership with The News Minute. Crypto-asset or cryptocurrency investments are subject to market risks such as volatility and have no guaranteed returns. Please do your own research before investing and seek independent legal/financial advice if you are unsure about the investments.

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