After a brief rally that pushed it to new highs, Bitcoin fell north of $40,000 The crypto market seems to be suffering from persistent selling pressure, uncertainty about the global economic situation and an imminent shift in the central bank’s monetary policy.
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Bitcoin is trading at $38,790 as of press time. There has been a 1.2% drop in 24-hours.
Via Twitter, legendary trader Peter Brandt gave “Gen Z” life advice and talked about the importance of making monthly savings in Bitcoin, stocks, and solid companies. As the world enters a period of potentially further uncertainty, Brandt’s message to younger generations was just to simply “HOLD”.
With decades of experience trading the legacy financial system, Brandt also advice “Gen Zers” to think about the market as a “hobby”. In that sense, he advised them to “secure a good job”, to be “frugal”, to get a degree on an area which can provide jobs opportunities, and to stay active in the market while hoping for lower prices in solid assets.
The Legendary trader advised students to not take out student loans. said:
A university degree is highly recommended. It is possible to enter a skilled trade. A friend of mine just received a $200k bonus for her child as a high-tolerance, computerized lathe engine.
Market conditions may be difficult for crypto traders and new Bitcoin users. The benchmark crypto price has fluctuated sideways since 2022. Other investment options could prove more advantageous in this sense.
Brandt added that he would like to reiterate his controversial position within the cryptocurrency market in general.
Also, I’m very open to renting income properties. Quality stocks are better than crypto. I believe crypto is not yet proven. Avoid 8hitcoins, jpgs. You can buy stocks cheaply if there is a bearish market.
How does Bitcoin react to macro factors?
In the short, Bitcoin’s price action seems to have been influenced by events in the White House as U.S. President Joe Biden signed an executive order regarding cryptocurrencies. BitBank’s analyst Yuya Hasegawa believes BTC experienced a “sell the fact” event.
According to Hasegawa, the upside momentum that was evident in the past week stemmed from a similar source.
The Treasury’s statement to the executive order had been temporarily leaked on Wednesday, which turned out to be a positive revelation for the crypto industry and sent the price of bitcoin from $39k to around $43k, but the president’s signature triggered rounds of sell orders as if short-term traders were waiting for that moment.
The analyst said that sellers have been reenergized by an increase in inflation expectations. Along with commodities, the U.S. Consumer Price Index continues to rise.
Rising inflation and rising commodity prices have pushed up inflation expectations while driving down real yields for treasury bond, likely why bitcoin is able to maintain a range-bound movement.
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BTC’s price will continue to be affected by the performance in the stock market, and could benefit from a cease fire in the Russia-Ukraine conflict.