The US stock market is crashing despite better-than-expected CPI print. NASDAQ 100 is down nearly 2.5% over the past 24 hours, while the S&P 500 is down 1%.
The cryptocurrency market has not shown any meaningful correlation with the broader equities market. However, it would be unlikely for Bitcoin and large-cap altcoins to resume their bullish trajectory while the stock market is crashing.
Additionally, the BTC sell-offs from various entities are contributing to the selling pressure on the crypto market. Consequently, experts believe that the Ethereum price could crash to $2800, while Bitcoin could correct to $47,000.
Unsurprisingly, investors are pivoting to stablecoins and crypto presales, considering they are not impacted by short-term market sentiment.
Ethereum Price To $2800, Bitcoin To $47,000
The Ethereum price is currently trading at $3,100, up nearly 2% over the past day. However, popular crypto analyst Johnny (@CryptoGodJohn) – who has nearly 700k subscribers – projects that ETH would likely grab the liquidity at $2800 before resuming its uptrend.
The bearish Ethereum price prediction may be surprising, considering that the spot ETH ETFs are set to start trading by mid-July. However, the inflows in the first few days are expected to be low, as also seen in the case of spot Ethereum ETFs.
Furthermore, ETH is still showing a correlation with BTC, indicating that the “altseason” has not yet started. As a result, the Ethereum price could correct to $2800, owing to the tremendous selling pressure on Bitcoin.
Tremendous selling pressure, indeed. The German government has sold over $600 million worth of BTC today on Thursday. While the Germans are nearly done with their Bitcoin holdings, Genesis has started offloading their $2 billion worth of Bitcoin.
Meanwhile, the Mt. Gox repayments are yet to start hitting the market.
Essentially, it appears unlikely that the Bitcoin price will secure a weekly close above its 200-day simple and exponential moving averages, both of which are currently hovering between $58k and $59k.
In such a scenario, the Bitcoin price could correct to $47k. Crypto expert Digital Nomad Woman – who has over 12k X followers – revealed that BTC typically retests its 40-week moving average in every major correction since 2012.
All eyes are now on the daily inflow trend of spot Bitcoin ETFs. Healthy inflows often act as a risk proxy for BTC. However, today’s ETF data is not one to boost confidence, with only $95 million in inflows recorded.
Crypto Presales Surge In Demand
Crypto presales are in high demand, considering they are not impacted by short-term price action. Rather, investors can buy high-upside tokens at a discounted price.
For instance, a new meme coin – Base Dawgz – has raised nearly $2.5 million in its ICO. Smart money traders have been quick to recognize its potential, with some even hinting at 100x potential returns.
As the name suggests, DAWGZ is a dog-themed token on the Base chain, Coinbase’s L2 venture. Base meme coins are in extremely high demand, especially after the meteoric ascent of Brett. In particular, the largest dog-themed token on Base – Basenji – has a market cap of just $40 million.
Owing to innovative concepts such as share-to-earn and staking rewards, Base Dawgz could be the next big meme coin on the Base chain.
Similarly, PlayDoge is another new meme coin in high demand, thanks to its play-to-earn utility. Indeed, the GameFi sector is in the spotlight, after the success of Notcoin and Hamster Kombat.
Experts believe that PlayDoge can be the next big crypto game, thanks to its combination of the iconic Doge character and the nostalgia of Tamagotchi.
