Bitcoin once again reached a new all-time high (now set at 73,777) before pulling back to the lower boundary of the range mentioned in yesterday's review.
Currently, the price of the leading cryptocurrency is at 67,330. The market capitalization stands at 2.49 trillion, with a dominance index of 53.27% and a fear index at 83.
U.S. markets declined yesterday due to the PPI coming in higher than forecasted. PPI is a leading indicator, and its increase suggests that inflation will continue to rise in the coming months.
Against this backdrop, the yield on 10-year bonds has risen, the dollar index has surpassed 103, and markets now expect the Fed rate cut only in June. At the same time, we see an anomaly - while bond yields and the dollar are rising, gold remains near its highs.
This indicates that the attractiveness of U.S. government bonds and the dollar, in general, has significantly decreased in investors' eyes. They are seeking alternative assets. Those who prefer ease opt for gold, while those who think better have long been in Bitcoin.
Why the dip? Because that's how the market works. No asset can grow continuously, even if it's Bitcoin. If perpetual linear growth were possible, everyone would be making millions. But that's not the case - if some make money from the market, others must bring that money into the market. The recent Bitcoin drop from 73,000 to 67,000 led to liquidations of approximately 100 million.
Among altcoins, STRK, MINA, and KAVA suffered the most from this downturn. BSV also saw a significant drop, but it's inherently sketchy.
The preferred scenario for today - a range with a bottom at 65,000-67,000 and a top at 73,000-75,000. An alternative scenario is consolidation below 65,000.
What to do is also clear. Accumulate Bitcoin, Ethereum, and altcoins. That's precisely what we're doing in our trading service.
It's only the beginning.