The cryptocurrency market experienced consolidation on Thursday, with many traders taking profits after a significant rise in token prices since Tuesday. This surge resulted in over $103 billion being added to the total crypto market capitalization. Optimism surrounding the asset class has improved, partly due to a series of spot Bitcoin ETF filings initiated by BlackRock, the world’s largest asset manager, followed by Valkyrie Investments, which is one of the few crypto asset managers currently holding an SEC-approved futures BTC ETF.
Stock Market Mixed Reaction Amid Hawkish Fed Comments
Stocks traded mixed on Thursday, as investors continued to process hawkish comments from the Federal Reserve suggesting more interest rate hikes due to persistently high inflation. By market close, the S&P and Nasdaq climbed 0.37% and 0.95%, respectively, while the Dow dropped 0.01%. Kitco senior technical analyst Jim Wyckoff noted that the market is short-term overbought and due for a downside correction soon.
Analyzing the Potential Correction and Future Growth
Market analyst Crypto Tony believes that the BTC price action could set up a wave 4 correction. Rekt Capital suggests that if BTC manages to close the month above $29,300, the chances of a rally into the $33,000 – $35,000 range are strong. MN Trading founder Michaël van de Poppe argues that the recent rally could be the first wave in a new bull market cycle and projects it to extend into the $38,000-42,000 range.
Altcoin Market: Top Performers and Future Outlook
The top 200 tokens in the altcoin market were divided between winners and losers, as traders rebalanced their portfolios in favor of tokens with more social media exposure. Top performers included Pepe (PEPE), Conflux (CFX), SingularityNet (AGIX), Moonbeam (GLMR), and Fetch.ai (FET). The overall cryptocurrency market cap now stands at $1.17 trillion, with Bitcoin’s dominance rate at 49.8%.
