After touching recent highs of $64,653 for Bitcoin and $2,815 for Ethereum, in a sudden move backward, the cryptocurrency market had sharply backpedaled on Thursday, with Bitcoin shedding more than 6% and Ethereum dropping more than 7%.
has left many analysts and investors wondering about the future course of some of the top digital assets, hence underlining how volatile the market is wrought by macroeconomic events and changing mood among investors.
📊 Crypto’s latest retrace is coming after longs were pouring in on exchanges like at the highest rate since Bitcoin’s All-Time High craze in March. Greed suddenly came pouring in on August 25th, and liquidations happened swiftly. When funding rates get extreme in either…
— Santiment (@santimentfeed)
Meanwhile, based on figures provided by Santiment, long positions have been transpiring at the fastest rate since Bitcoin’s peak in March, which is indicative of a spike in market optimism-or perhaps greed-around August 25th.
The wave of liquidations appeared to catch the cryptocurrency market by surprise, which fully ended its optimistic sentiment and led into a steep correction in typical fashion for the wild swings of crypto. Santiment says such sudden market shifts are often driven by excessive leverage, as when imbalanced funding rates herald an impending correction by way of the market resetting.
Economic Factors At Play
Likewise, speculations of US monetary policy are one of the key drivers for this recent change in price. Chairman Jerome Powell hinted at a probable interest rate cut this year in the last meeting, adding more fuel to speculation of more liquidity in the market.
Since there is a traditional weakening of the US dollar when interest rates are low, it makes cryptocurrencies more attractive to investors.
According to Ryan Lee, the chief analyst at Bitget Research, may range between $54,000 and $72,000, while may range between $2,250 and $3,350 in September. But again, these are not without their own set of disclaimers since the market is always open to surprises which might change this trend.
Total crypto market cap at $2.06 trillion on the daily chart:
Trading Volume And Market Activity
Despite the declines, however, trading volume has jumped. Whereas an upsurge in trading volume could indicate panic selling by investors attempting to cut their losses, it might also be interpreted as quite the opposite – that investors feel bullish and are buying into what they perceive to be undervalued prices in anticipation of a market recovery.
For example, the of Bitcoin exceeded $30.5 billion, a 30% rise. It also usually means that some traders are closing their positions while others are benefiting from the great discounted rates. The reaction of the market to this development will finally determine the both Bitcoin and Ethereum travel.
Ethereum issues go beyond price volatility. In the past month, daily trading volumes have dropped 55%. This drop in network activity raises concerns about the Ethereum ecosystem’s health.
Ethereum trading volume dropped from 134.71 billion dollars in July to 91.46 billion in August. The platform’s monthly transactions have decreased to their lowest level since May 2020, indicating a lack of interest.
Analysts say this may be cyclical. At present, the environment is not suitable to attracting network workers.
Featured image from Flickr, chart from TradingView
They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.
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Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).
Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!
So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).
Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.
Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.
Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.
Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.
So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.
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