The cryptocurrency market is showing activity amidst discussions of a possible Fed rate cut. Investors are focusing on Bitcoin, Ethereum, and Solana, though forecasts are not overly optimistic.
Bitcoin: Trends and Reality
Bitcoin has risen above $120,000, but signs of weakness are emerging. The cryptocurrency dropped below a key upward trend line, which may indicate a decline to levels of $108,200 - $103,800.
Over 70,000 BTC has been transferred to exchanges, indicating that whales may plan to sell. According to an expert, this behavior could worsen the impact of a possible Fed rate cut on the crypto market.
Ethereum: $5K Target, with Risks
Ethereum is trading at $4,740, nearing the psychological barrier of $5,000. However, data shows a short-term MVRV (Market Value to Realized Value) of around 15%, which in the past has often precede declines. Its long-term MVRV is significantly higher at 58.5%, indicating investors may start realizing profits.
The Fed rate cut’s influence is particularly important for Ethereum due to its role in DeFi and staking.
Solana: Breakout or Breakdown?
Solana has exhibited growth, currently trading at $205, aiming for a breakout above $215. Institutional interest in Solana's ecosystem is rising, yet like other cryptocurrencies, it remains subject to changes in global monetary policy.
The future of Solana hinges on whether reality aligns with investor expectations.
Speculation regarding the Fed’s decisions has become a significant factor in the cryptocurrency market. Bitcoin, Ethereum, and Solana are at critical junctures, and unrealistic expectations may turn into disappointments. It is essential to remain cautious while evaluating opportunities and risks.
