Bitcoin and Ethereum are on track to record their best months since last October. Thus causing some investors to ask if the crypto bear market is over.
Bitcoin and altcoin market overview
Bitcoin (BTC) has reached $24,557.96, its highest level since June 13. This peak came with an additional 9% increase to the momentum during the week. Thus, the Bitcoin price has gained more than 19% so far this month. On the other hand, Ethereum’s earnings exceed 55% in the same period. Still, the leading cryptocurrencies are trading 65% below their peaks last year. The total value of the market also melted at this rate.
Despite the recent gains, “market data continues to show that investors are abstaining,” NYDIG analysts wrote in a note Friday. Analysts note that open interest in Bitcoin futures and options, which measure total outstanding derivatives contracts, has been keeping pace with recent lows but well below record levels. On the other hand, investor sentiment is quickly turning around, as the on-chain data shows.
Perpetual swap funding rates also remain mostly neutral, according to data from Coinglass.
A positive funding rate is usually seen as bullish, while a negative funding rate is usually a bearish sign, as investors are willing to pay in long positions. Coinglass analysts interpret this data in a recent tweet:
Funding rates are still low in absolute terms, indicating that investors have no desire to take a directional position, but they seem to be trending higher.
From a technical standpoint, Blockware analyst Will Clemente considers it worth watching to see if Bitcoin can trade above its 200-week moving average, currently at $22,800, by the end of this week.
Analysts noted that the overall macroeconomic environment still plays the most important role.
Ben McMillan, founder and chief investment officer of IDX Digital Assets, has this to say on the Fed’s monetary policy:
Not surprisingly, the Fed and its actions will dominate this year.
The stock and crypto market rallied after the Fed raised interest rates by 75 basis points. Fed chair Jerome Powell says another rate hike of the same scale is possible in September. But he adds that the decision will depend on future economic data. Some traders think the Fed will slow rate hikes, while others believe such expectations may be premature.
As you follow on Kriptokoin.com, the Fed increased the policy rate by 75 basis points on July 27. The cryptocurrency market has grown by over 15% since then.
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