The dollar pulls cryptocurrencies and other risky assets down

The dollar is pulling risky assets down, subordinating cryptocurrencies to this trend. On Friday, the bitcoin rate falls, trying to gain a foothold below Thursday's low of about $ 37,400.

Expiration took place in the derivatives market earlier today,where the greatest interest was focused on the $ 38,000 strike and now only triple expiration expectations in the US derivatives market can keep from developing negative dynamics, which can limit the sale of risky assets in general, with which cryptocurrencies are correlated.

The reason for investors in all markets to go tothe weekend was not in a rosy mood, the resultslast Fed meeting. After raising the inflation forecast for this year, the committee assumed that by the end of 2023 the key rate would be doubled. Previous expectations were not so aggressive. The volume of purchases of market assets remained unchanged, but its adjustment – It's just a matter of time. It is not yet known whether this will happen in September or whether macroeconomic data will allow the Fed to postpone the start of policy normalization to December. In any case, the stakes will be higher later and the countdown has already begun.

An alarming situation has also appeared in the cryptocurrency market.signal. According to Glassnode, long-term Bitcoin investors appear to have begun to hedge their bets and trim their profit positions. This is indicated by the LTH-SOPR indicator. Previously, Santiment calculated that over the previous 25 days, owners of addresses holding from 100 to 10,000 BTC increased their positions by the equivalent of $367 billion. It was their purchases that helped stabilize the market in May after a wave of sales by short-term investors and liquidations on the urgent market. market.

Now if they switch to sales, the way outfrom the current consolidation up, what the optimists are counting on will be questionable. The formation of a downward wave towards $ 35,000 is locally confirmed (it may be lower if the movement is dynamic).

On Friday, it also became known about the requirementauthorities in the Chinese province of Sichuan to suspend operations until June 20. Alibaba Cloud has warned that it may suspend the provision of domain services due to regulatory requirements.

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