Home Markets Data Suggests Crypto Market Could See Another Selloff

Data Suggests Crypto Market Could See Another Selloff

Data Suggests Crypto Market Could See Another Selloff

The crypto market has seen significant declines over the past 10 days as medium to long-term expectations have been hit hard. First, a scale market sellout conducted by whales and miners saw Bitcoin and Ethereum prices plunge below $21,000 and $1,550. Then, Fed Chairman Jerome Powell’s hawkish stance pushed Bitcoin and Ethereum prices even lower. The data suggests that the crypto market could likely see another selloff amid a possible 75bps rate hike in September and bearish futures.

Another September Crypto Market Selloff

The crypto market has turned more bearish as major cryptocurrencies Bitcoin and Ethereum continue to fall below key psychological levels. Wall Street banks, including Bank of America, Goldman Sachs and UBS expect rate hikes of at least 100 basis points by the end of the year.

Wall Street pundits are predicting a rate hike of 50 or 75 basis points in September and rate hikes of 25 to 25 basis points in November and December. While Chairman of the Fed Jerome Powell reaffirms strong rate hikes to curb inflation, it also confirms slow rate hikes under favorable conditions.

According to CME’s FedWatch Toola rate hike of 75 basis points in September has a probability of 66.5% and a rate hike of 50 basis points has a probability of only 33.5%.

Investors now have a bearish sentiment as medium to long-term expectations are negative. BTC and ETH options and futures are bearish as the September expiry could see billions in liquidations.

However, a big rate hike in September will most likely hinge on September 13 CPI data, with the Fed expecting lower commodity prices.

Another bearish factor

The Crypto Market Could Witness several bearish factors lowering prices. However, the movement of dormant bitcoins after several years is an important bearish signal.

5000 BTC dormant for 7-10 years were sold as a single block. This is potentially important in terms of market timing, as the crypto market continues to decline. Previous dormant bitcoin moves this year were followed by a downturn. Thus, the crypto market could see another drop in September and crypto prices could retest July lows.

Varinder is a technical writer and editor, technology enthusiast, and analytical thinker. Fascinated by disruptive technologies, he shared his knowledge on blockchain, crypto-currencies, artificial intelligence and the Internet of Things. He has been associated with the blockchain and cryptocurrency industry for a substantial period of time and currently covers all the latest updates and developments in the crypto industry.

The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.


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