After peaking briefly near $1.00 on April 1 and April 9-10, 2024, Fantom (FTM-USD) fell sharply. This is due to Bitcoin (BTC-USD) prices falling. FTM prices settled in the $0.70 - $0.72 range when the cryptocurrency sector reacted to unfavorable economic data.
Stock markets recalibrated for the Federal Reserve removing its dovish, or interest rate loosening, tone. In March, U.S. inflation rate levels, as measured by the CPI, failed to fall. Late last week, Q1/2023 GDP growth slowed while core inflation rates remained high.
The persistently high interest rate levels increase the attractiveness of holding the U.S. dollar. More worrying for the currency market is the weakness in the Japanese Yen. The USD-JPY rose to as high as 158, prices not seen since the 1990s, on Sunday, April 28. The weak Yen is in response to currency traders expecting no change to U.S. interest rates when the Fed meets on Tuesday through Wednesday.
The strong U.S. dollar hurts FTM-USD.
Increased Supply
Long-term FTM holders who took advantage of the three-year high above $1.2 sold their position. This increased Fantom supplies by 16 million flowing into exchanges.
Wait for the selling volume to ease. Until then, FTM prices may continue to weaken from here.
