Interest Rate Expectations Weigh on Crypto Market, $69k Break-Even Zone Key

Cryptocurrency analytics company Glassnode has reported that interest rate expectations in the US bond market are affecting the crypto market. The firm notes that fading expectations of interest rate cuts and the pricing in of a potential rate hike have suppressed risk appetite, leading to investors holding new capital in cash and low-risk instruments rather than crypto assets.

The continued strength of the dollar is also contributing to the weakening of marginal demand for cryptocurrencies. Glassnode identified the $69,000 level as a break-even cost zone and significant resistance for short-term investors, stating that this region needs to be surpassed with increasing trading volume for a stronger recovery in Bitcoin.

According to Glassnode, Bitcoin's current downturn represents the shallowest bear market to date in terms of price loss. However, it doesn't appear to be over yet when compared to previous market cycles in terms of time. The report also noted that spot market trading volumes have fallen to multi-year lows, and sell orders have thinned.