The cryptocurrency market digest (BTC). Overview for 04.05.2022

May 4, 2022

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On Wednesday, the BTC is balancing at $38,800.

Everyone is waiting. The US Fed’s 2-day meeting will be over later today and the regulator is expected to raise the rate. 100%. The question is – by how much? Average market expectations imply a 50-point hike, yup to 0.75-1.00%. this has already been included in prices, so investors will focus their attention on what Fed Chairman Jerome Powell has to say and how he is going to sound.

If the Fed announces its intentions to raise the rate and cut its portfolio quickly, such indices as NASDAQ and S&P 500 will drop. We remind you that there is a direct correlation between stock indices and the BTC, so if stock investors start selling, the BTC might drop to the support level at $34,800. On the other hand, if the situation remains calm and quiet (it’s very unlikely, but still), the BTC may reach or even break $41,000. If it really happens, it might be a signal for recovery.

The Fed’s stance is also understandable: judging by the GDP Q1 2022 data, the country is already one foot in the economic recession. It can’t happen, that’s why the regulator will try some tools “in real-time mode”.

Loans in the BTC: will there be a demand?

Goldman Sachs offered its clients BTC-based loans. A “pilot” case was successful – the bank’s clients got fiat money collateralized by Bitcoin owned by the borrower. For Goldman Sachs, this experience was interesting because of its structure and 24-hour risk management. There is no guarantee that this product will become global – the BTC is very volatile, so the rates might be non-market. However, if the bank considers this case as experience, it might be very interesting and used in some specific cases.

Rari Capital: significant losses

Rari Capital got hacked and over $80 million of crypto assets were stolen. It is already known that the security vulnerability was the reentry point of the protocol smart contract. The platform offered hackers to return crypto assets for $10 million, and it’s not clear how it all pans out.

Otherside: everything was sold out

All available virtual lands in the Otherside metaverse, and that’s 55,000 NFTs, were sold out in three hours. 45,000 more NFTs were included in the distribution to owners of Bored Ape Yacht Club and Mutant Ape Yacht Club tokens. As a result, the company attracted $317 million. All buyers passed obligatory verification – which means that users were not embarrassed to identify themselves.

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Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.