After an extremely turbulent week, the cryptocurrency market is trying to recover: bitcoin quotes rose by 25% from the minimum values on May 12. Nevertheless, there is still no foundation for a prolonged price increase, and what is happening looks more like a tactical retreat before a further attack towards the $20 thousand level. The remaining coins repeat the dynamics of the main cryptocurrency and their position looks no less precarious.
The drivers are still the same: lack of demand for risky assets amid fears for the global economy.
There is still no positive news from the economic front, while investors prefer to keep their capital in the most protected instruments: the dollar, gold, treasuries, etc.
The growth rate of industrial inflation in April decreased from 11.5% to 11%, but still remains at high levels, as a result of which market participants expect to see an increase in the interest rate by 50 basis points at the next meeting of the American regulator. Salaries in the United States are growing by 5-6%, and in order to cope with high inflation values, the Fed will need to achieve a slowdown in this indicator, so the process can hardly be called painless. In addition, consumer prices will clearly continue to stay at the achieved levels, and this will ultimately negatively affect non-business and affect the value of shares. Given the strong correlation of cryptocurrencies and the US stock market, in such conditions, it is clearly not worth counting on the start of the bitcoin price rally.