Bitcoin started the trading session on Wednesday with sideways movement. At the time of writing, the coin was trading at $16,521.
According to virtual asset price tracking website CoinMarketCap, over the past 24 hours, the highest value of bitcoin reached $17,051, and the low was $16,662.
At the end of the trading session on Tuesday, the BTC managed to grow slightly after several days of a steady fall, but the coin could not stay above the key level of $17,000. At the same time, many experts are certain that the return of the first cryptocurrency back to the green zone can only be a temporary recovery.
So, ahead of analysts from the American financial conglomerate Morgan Stanley, they said that in the near future bitcoin could collapse to $14,000. Such a scenario will become very likely if the cryptocurrency does not gain a foothold above $17,000. At the same time, experts do not exclude the decline of bitcoin to $13,500, and in the worst case, up to $12,500.
The key reason for the optimistic behavior of bitcoin ahead of cryptanalysts is the release of fresh data from the US Bureau of Labor Statistics. Thus, in October, the producer price index (PPI) amounted to 8% on an annualized basis against the market forecast of 8.3%. The final data points to a slowdown in inflation in America and may be an important reason for easing tight monetary policy by the US Federal Reserve.
An additional factor in the growth of the main virtual asset and the cryptocurrency market as a whole was the spectacular strengthening of US stock indices the day before. So, according to the results of trading on Tuesday, the S&P 500 index increased by 1.7%, while the NASDAQ Composite rose by 2.4%.
By the way, since the beginning of 2022, analysts have increasingly begun to emphasize the high level of correlation between the US securities market and virtual assets amid intense anticipation by both the consequences of the geopolitical conflict in Eastern Europe and further steps by the Fed.
Earlier, experts from the investment company Arcane Research have already stated that the correlation of BTC and technology securities has reached its high since July 2020.
In addition, the day before, economists from the TradingView analytical platform said that the relationship between the cryptocurrency market and the US stock market reached 70% in the past quarter.
Altcoin market
Ethereum, bitcoin's main competitor, started Wednesday with a slight upward trend. By the time of writing, the coin was trading at $1,262. Crypto experts suggest that ETH has two scenarios ahead. If the coin breaks the resistance level around $1,280, it will soon have an important psychological mark of $1,300. A confident breakthrough above this resistance level will provoke a tangible recovery wave, when Ethereum can rise to $1,350, and later rush to $1,400.
If the altcoin fails to rise above the important key mark of $1,300, it will start a new decline, where the price of $1,225 per coin will become the initial support level, analysts say. The next key support will be $1,200, and then $1,170 later. If the bulls do not defend Ethereum support at $1,170, the altcoin risks falling to $1,100 in the near future.
As for cryptocurrencies from the top 10 by capitalization, within the past 24 hours, the best results were recorded by XRP (+2.84%), and the worst by BNB (-0.92%).
According to the results of the past week, BNB (-15.14%) also topped the decline list among the top ten strongest digital assets, while Dogecoin (+0.38%) topped the list of growth.
According to the world's largest virtual asset data aggregator CoinGecko, over the past 24 hours, among the top 100 most capitalized digital assets, the first place in the decline list went to the Trust Wallet Token (-10.13%), and the Arweave coin showed the best results here (+ 15.37%).
According to the results of the past week, among the top hundred strongest digital assets, the worst results were demonstrated by the digital asset Solana (-38.26%), and the best - Trust Wallet Token (+74.99%).
According to data from CoinGecko, as of Wednesday morning, the total market capitalization of cryptocurrencies failed to settle above the $850 billion level, despite the fact that this figure has increased by 3% over the past two days.
Since last November, when the total market capitalization of cryptocurrencies exceeded $3 trillion, it has more than tripled.
