The correlation between the Nasdaq and bitcoin continues to tighten. US tech stocks are down 2.4% in the second day of heavy selling and bitcoin is under the same kind of pressure. It's down $1983 to $43,928 and that takes out the April 1 spike low.
Bitcoin rallied strongly from mid-March through the end of the month but is now in a retracement phase alongside global risk assets. Technically, I would eye $44,000 first, which is the 38.2% retracement of the March rally but that is perilously close to breaking as I write this.
Next is the 50% retracement at $42,800 and 61.8% at $41,550.
All asset markets will be watching the FOMC minutes at 2 pm ET for signs on how aggressively the central bank will hike. Those minutes are for the previous meeting but if there was a difficult discussion about hiking 50 bps then (they ultimately hiked 25 bps), then it will be transposed to the upcoming meeting. Currently an 83% chance of a 50 bps hike is priced in but Fed officials have sent mixed messages. The meeting is on May 4.
