As a seasoned analyst with over two decades of market experience under my belt, I’ve seen bull markets rise and bear markets fall. The current trajectory of Bitcoin and other cryptocurrencies is certainly reminiscent of a familiar dance – a waltz of euphoria and despair that we’ve witnessed before.
Today, Bitcoin‘s price trend shows a steady decrease, falling below $58,000 during the U.S. trading period. Currently, it is being traded at approximately $58,200, which represents a 4.4% decline over the past 24 hours.
This decline slightly outperforms the broader CoinDesk 20 Index, which has fallen by 5.6%.
1. Alongside Ether, Chainlink, and Cardano, it’s worth noting that they too have experienced substantial drops. Among them, Solana has reported the most significant drop at nearly 9%. As we approach the end of August, bitcoin’s monthly loss surpasses 12%, which essentially undoes its growth from July.
This month, Ether dropped by 25%, which means its annual growth is now only 7%. In the same vein, Solana’s year-to-date progress has been reduced to 31%, following a 25% decline this month.
Market analysts have observed an interesting pattern: prices frequently increase during Asian business hours but decrease when the American market becomes active. Miles Deutscher has pointed out this tendency, explaining that Bitcoin has seen a rise of more than 5% in the past two weeks during Asian trading, but it has shown losses during U.S. trading times.
Regardless of the possibility of greater institutional involvement or a more supportive legal environment, Bitcoin is still about 20% below its previous high of nearly $73,500, which it reached just five months ago.
Following the U.S. Labor Day holiday, there might be a change in market trends due to the impending release of fresh economic data.
Of particular importance is the upcoming Nonfarm Payrolls Report scheduled for release next Friday. Given the underwhelming job figures from July, there’s currently a general anticipation for a relatively small interest rate reduction by the Federal Reserve.
If the employment data shows further weakness, it might lead investors to anticipate a larger reduction in interest rates, thereby boosting optimism in riskier investment areas such as cryptocurrencies.
Instead, a strong jobs report in September might lessen expectations for substantial monetary relaxation, moderating market predictions.
As an analyst, I’m observing that these economic indicators seem set to have a substantial impact on market trends in the short-term, implying continued market fluctuations with possible advantages for upward movement.
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2024-08-30 22:44