Daily Brief - From Record Highs to Strategic Lows

TLDR: The once soaring crypto is experiencing a notable dip, descending over $10,000 from its nearly $73,679 record peak, affecting other digital currencies and even impacting shares of major crypto exchange Coinbase.

This adjustment phase has been accentuated by significant outflows from these ETFs, hinting at a changing investor sentiment. Market strategists suggest that a correction was overdue given the rapid market escalation.

Compounding the market's nervousness are concerns over the U.S.'s hotter-than-expected inflation data, which could influence the Federal Reserve's monetary policy.

As the crypto market awaits the outcome of today's FOMC meeting, the focus turns to the Fed's dot plot for guidance on future interest rates, with any deviation potentially affecting investor appetite for risk-heavy assets like cryptocurrencies.

Despite the current volatility, the long-term forecast for Bitcoin remains bullish, with analysts projecting a potential climb to $150,000 by 2025. This optimistic outlook underlines the belief that current market fluctuations are part of Bitcoin's natural ebb and flow, offering strategic investment opportunities for those looking beyond the immediate horizon.

Market Movers: When BTCUSD falls:

Here is the response from altcoins on a 1-month horizon, when Bitcoin has historically fallen 12% in 1 week:

1. Bitcoin (BTCUSD): 2.24%
2. Tether (USDTUSD): -0.01%
3. USD Coin (USDCUSD): -0.01%
4. Binance Coin (BNBUSD): -0.39%
5. Ripple (XRPUSD): -2.15%
6. ChainLink (LINKUSD): -2.50%
7. Dogecoin (DOGEUSD): -2.72%
8. Ethereum (ETHUSD): -3.14%
9. Avalanche (AVAXUSD): -4.91%
10. Solana (SOLUSD): -8.28%
11. Cardano (ADAUSD): -9.73%

Asset Spotlight: Toggle called it! (jk)

On the last four instances when Bitcoin's market capitalization reached its peak, analysis from Toggle indicated a median decline in the cryptocurrency's value over the following six months.

Historically, such a median return trajectory suggests Bitcoin's price could approach approximately $48,000.

Earnings Update: Accenture reports tomorrow

Accenture previously reported earnings of $3.27 per share for Q4 2023, surpassing analysts' estimates of $3.14. For the upcoming quarter, analysts had varied expectations, with estimates for Q2 2024 earnings ranging from a low of $2.51 to a high of $3.42 per share, averaging around $2.85.

However, it's important to note there have been concerns regarding its outlook for fiscal year 2024. After reporting Q4 earnings for FY 2023, the company's guidance for FY 2024 was seen as disappointing by some analysts due to macroeconomic pressures affecting its Consulting and Communication, Media, and Technology sectors.

Discover how other companies could react post earnings with the help of TOGGLE's WhatIF Earnings tool.