Every attempt by Bitcoin and Ethereum to higher highs has been overshadowed by fundamental developments. Now the data points to another slump following the latest sell-off triggered by Jerome Powell’s hawkish statements. Cryptocurrency investors should pay attention to this date range…
Data shows cryptocurrency market will witness another sale
The crypto market has seen significant declines over the past 10 days, with medium and long-term prospects heavily impacted. First, a market-wide sell-off led by whales and miners became apparent. Later, Bitcoin and Ethereum had to surrender the $21,000 and $1550 supports. Then, Fed Chairman Jerome Powell’s hawkish stance pushed Bitcoin and Ethereum prices further down. The data suggests that the crypto market could likely witness another sell-off in September amid a possible 75bps rate hike and bearish futures. The macro environment does not allow the total value of the cryptocurrency market to exceed the 1 trillion threshold.
Cryptocurrency investors beware this month
The crypto market fell further as the top cryptocurrencies Bitcoin and Ethereum continued to drop below key psychological levels. Wall Street banks such as Bank of America, Goldman Sachs and UBS expect rate hikes of at least 100 basis points by the end of the year.
Wall Street experts are forecasting increases of 50 or 75 basis points in September and 25-25 basis points in November and December. Fed Chairman Jerome Powell is reaffirming hard rate hikes to curb inflation, while also reaffirming slow rate hikes under favorable conditions.
According to CME’s FedWatch Tool, a 75bps rate hike in September has a 66.5% probability, while a 50bps rate hike is only 33.5% likely. Investors are now in a downward trend due to the negative medium and long-term expectations. BTC and ETH options and futures are bearish as September end could witness billions of dollars in liquidation. However, the sharp rate hike in September will depend on the CPI data on September 13, as the Fed expects a decline in commodity prices.
Another bear factor
The crypto market is facing a few more bearish factors that are pushing prices down. However, Bitcoin, which is still dormant a few years later, is interpreted as a significant bearish signal.
5000 BTC, which was idle for 7-10 years, was sold in a single block. It is potentially important in terms of market timing as the crypto market continues to decline. This year, the previous dormant Bitcoin movements were followed by a regression. Therefore, experts expect further declines in the crypto market in September. According to experts, crypto prices may retest July lows.
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