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Bitcoin’s price is down 10% — New bear market or correction?

Bitcoin’s price is down 10% — New bear market or correction?

In today’s episode of Market Report, Marcel Pechman, an analyst and writer, discusses the possible reasons for Bitcoin’s price to move away from $27,000. This includes the upcoming United States Federal Reserve meeting on May 3. Every Tuesday, you can watch this show on the Cointelegraph Markets & Research YouTube channel.

The first news article analyzes the factors that could prompt Bitcoin’s next move, such as whether the Fed will follow the market consensus of a 25-basis-point interest rate hike on May 3. The video also explains how interest rates affect families and businesses and how Bitcoin should react to the central bank’s decision.

Pechman believes that as the US is nearing its debt limit and showing signs of weakness and recession, the correlation between Bitcoin and the stock market should decline. He does not think that there is a reasonable explanation for Bitcoin trading at $25,000, as some analysts have suggested.

Next, Pechman talks about Coinbase’s court action against the Securities and Exchange Commission. Coinbase is seeking clarification about how tokens are classified as securities. The regulator has been postponing its ruling and harassing exchanges without providing any direction on what sets the bar for tokens to become securities. Pechman thinks this case could have a more significant impact than previously thought because judges will take note of the SEC’s arguments.

In the last segment of The Market Report, Pechman discusses Ether’s problems, as average transaction fees are above $4, and the total value locked in Ethereum’s smart contracts in Ether terms has dropped to its lowest levels since August 2020.

Finally, Pechman examines Ether’s derivatives markets, specifically the put-to-call options volume. Protective put options outnumber the neutral-to-bullish call options by over four times. Based on pro traders’ bearish view, Ether’s price is unlikely to sustain the $1,850 support.

The Market Report airs every Tuesday on the Cointelegraph Markets & Research YouTube page. Please like and subscribe to stay updated on all our future videos and updates.