Risk Asset Meldown! Now What？

Date: June 15th2022

Bitcoin Tumbles

Bitcoin extended its yearly losses this week by another 12% yesterday, now trading close to $20,000. It is evident the markets hadn't priced in a large enough federal reserve interest rate hike to curb inflation. On top of this, crypto lender Celsius announced they were freezing withdrawals, further exaggerating the pain in the industry right now.

My personal prediction here is that BTC may linger around this level for a few days before having some sort of “bear market rally”. However, with the current factors in play right now, a broader move below $20,000 isnt off the table.

Stocks Sinking

Keeping consistent with the current market theme, technology stocks are also pointing one way at the moment, and that is down. Again, fears of rising inflation and, as a result, an increasingly aggressive Federal Reserve, are the factors causing this fall.

The NASDAQ100 chart is above, and it shows a bear market. The market could test the gap area highlighted by the orange box. This is true resistance. From here, the NASDAQ100 could test 10,000 before the next bounce.

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