Today, cryptocurrency prices extended their losses, with Bitcoin trading below $31,000. The largest cryptocurrency by market cap fell more than 8% to $29,763. According to CoinGecko, the global crypto market’s worth has dropped more than 10% in the last 24 hours to $1.41 trillion.
For the first time since July 2021, the price of Bitcoin Price dipped below $30,000. In the last seven days, the price of Bitcoin has dropped 19.63 percent. Several other top 10 crypto assets’ prices have plummeted in the last 24 hours, with Ethereum’s price falling by 5.9% to $2319.
Is a comeback on the cards?
Bitcoin (BTC) and the rest of the crypto markets are preparing for a comeback, according to a closely followed crypto trader, ahead of the current consumer price index (CPI) update.
Cantering Clark, a pseudonymous crypto strategist, says he’s keeping an eye on the USDT dominance (USDT.D) chart, which shows the market share of stablecoin Tether (USDT) in comparison to the rest of the crypto markets.
The rising dominance of USDT shows that market participants are selling their crypto assets to invest in Tether. Meanwhile, the USDT.D chart is correcting, indicating that traders are leveraging their Tether to buy other digital assets. Clark believes the USDT.D chart, which is hanging at all-time highs, is due for a correction.
“I think we bounce soon. Slowly buying more spot in this region, not just a short term trade, and not afraid to buy lower. I think these buys will be rewarded outside of just a weekly timeframe. The chart you are looking at – stables dominance at an ATH. Give spike down.”
The upcoming CPI update, which is set to be released on May 11th, could act as a catalyst for a relief rally, according to the crypto trader. Even if the CPI comes in slightly lower next week, the market will react in the near term, even if it has no bearing on inflation.
When it comes to Bitcoin, the crypto trader feels that, while a drop below $20,000 is possible, the chances of a dramatic decline are minimal.
“Is it possible for BTC to go sub $20,000 and beyond just some wick? Yes absolutely. Do I think it is likely? Absolutely not lol… Not going to jump on the $24,000 bandwagon. I think buys in the low $30,000 will be rewarding before anything like that.”
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