This week, many altcoins have grappled with depreciation, led by Bitcoin. Proceeding into the end of the week with a bearish break has demoralized many traders. However, as we leave one more week behind, we are wondering what will happen next week. Here are the details…
Bitcoin and altcoins fell this week
The cryptocurrency market has faced a new period of uncertainty, signaling a decline in prices after the short-term upward movement in the previous week. The focus of this drop has been Bitcoin (BTC), the dominant cryptocurrency in the market. BTC dropped a modest 2% overnight and fell below the $29,000 threshold on Thursday. Then, its decline deepened. This decline coincided with the release of the minutes of the most recent Fed policy meeting, which revealed the central bank’s commitment to a cautious monetary approach in an ongoing bid to control inflation. After that, on the same day, the value of Bitcoin fell below the $28,000 level for the first time in two months.
The situation deteriorated further as Bitcoin saw a rapid decline in value and reached $25,649 before experiencing a partial recovery. Experts in the field have expressed their concerns about the gradual decline in market liquidity, which has continued for a significant period of time and has left the entire cryptocurrency market vulnerable to sudden and significant sell-offs. The predicted market downturn became reality after reports that China’s leading real estate conglomerate Evergrande has filed for Chapter 15 bankruptcy protection in a Manhattan court. This development led to a rapid sell-off by institutional investors and large holding holders, resulting in a notable drop in the prices of both equities and assets perceived as riskier, including Bitcoin. Ultimately, the week of trading ended with Bitcoin reaching a closing price of $25,935, reflecting an 11.9% drop over the course of the week.
What will happen next week?
Looking ahead to the week ahead, we see a few notable events and developments on the horizon. As Tuesday, August 22nd approaches, the market awaits the outcome of the legal lawsuit between Grayscale and the US Securities and Exchange Commission (SEC). In addition, Michelle W. Bowman, member of the US Federal Open Market Committee (FOMC), is scheduled to give a speech. Cryptocurrency exchange OKX is scheduled to remove DORA/USDT and ENJ/USDT trading pairs on Thursday, August 24. Simultaneously, the Jackson Hole Symposium, an important three-day economic conference, will begin in the United States. This event is preparing to bring together central bankers, finance ministers, academics and financial market participants from various corners of the world. A
In addition, US Initial Unemployment Claims data are expected to be released and expectations set at 244,000 (previously 239,000). Finally, on Friday, August 25, key figures in finance are scheduled to address the public. Fed Chairman Jerome Powell is expected to speak at 17:05, followed by ECB President Christine Lagarde’s speech at 22:00. In an environment characterized by its dynamism and sensitivity to external factors, the cryptocurrency market continues to attract the attention of investors with its inherent volatility and sensitivity to global economic changes and regulatory dynamics. Market participants are advised to act prudently and maintain their awareness of rapidly evolving market conditions.
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