The cryptocurrency market digest (BTC, ETH). Overview for 29.04.2022

The BTC has been successfully recovering for a couple of days but bears struck back. The major cryptocurrency is mostly trading at $39,573.

The key intrigue is the US Fed’s May meeting. Market expectations imply a 50-point rate hike and they are already included in prices. However, after yesterday’s GDP Q1 2022 report, which showed -1.4% q/q after being +6.9% q/q the quarter before, expectations are now less optimistic. The report showed a decline in spending, which is the consequence of the stimulus package closure. People are spending money but there is no guarantee that they could continue doing it for a long time if the economic growth slows down. It means that the Fed might raise the benchmark interest rate but the regulator’s comments are expected to be cautious – it is not certain that the country’s economy is really stable.

NASDAQ and S&P 500 corelate with the BTC, that’s why this data is important for the major cryptocurrency either.

The current technical picture in the BTC shows the sideways channel between $33,500 and $48,500, which was formed early in the year. The closest target for bears remains at $37,000. To start stable growth, bulls must fix above $40,500.

ETH: flat and negative

The ETH is also consolidating – on Friday, the asset is balancing at $2,928. At the same time, the mid-term channel remains valid, and the downside target may be at $2,618 if the market continues to be bearish.

Otherside: prove your identity

The Otherside metaverse is ready to sell the virtual land property “under the hammer” but only to those, who pass the KYS verification. It’s rather unusual: it is believed that in virtual reality it’s possible to avoid revealing one’s true identity. Otherside is a metaverse project that was earlier focused on NFTs. To create its metaverse, Otherside raised $450 million of investments.

Goldman Sachs will study NFTs

Goldman Sachs said it didn’t exclude the possibility of tokenization of real assets. To do this, the company is planning to study the aspects of NFTs in the context of financial instruments. The bank is already working with cryptos: in 2021, Goldman Sachs started offering derivatives on the BTC to its clients, and this March it launched a crypto-based OTC instrument in cooperation with Galaxy Digital.