The market, which includes Bitcoin, SHIB, ETH and other cryptocurrencies, has remained relatively quiet for the past few days. However, there are some signs that a big move is coming, whether up or down. So, why is a big move expected in Bitcoin and altcoins?
What happened in the market?
cryptocoin.com As we reported, Bitcoin fluctuated at $ 19,000, where it remained for about a month with some momentary interruptions. The volatility of the cryptocurrency, which is the largest by market cap, has remained unusually low in recent weeks, according to Coin Metrics. While BTC is at $ 19,100 at the time of writing, Ethereum (ETH) is trying to exceed $ 1,300. Crypto prices continue to be under pressure with more than 70 percent drop from almost a year ago.
Chart analysts expect the cryptocurrency to drop further. Some argue that June lows of around $17,000 will be retested. Others believe that if it fails to hold at $19,000, we will see a drop to $ 10,000. “Crypto markets are progressing very little in either case,” said Richard Usher, head of OTC trading at BCB Group. He stated that there will be no change in the sector until the broad risk takes a leap.
Bitcoin and altcoin traders are watching this data
Traders are watching the economic data this week. While recent Bitcoin volatility has been low compared to stocks, the correlation between the two is still high. Crypto market analyst Yuya Hasegawa noted that the Bitcoin price is currently holding the $19,000 level. But this week, he drew attention to the FOMC minutes and CPI data. According to the analyst, with this data, “the market will likely be risk-averse, which will likely put pressure on Bitcoin.” The price movement of Bitcoin as a result of developments also deeply affects other cryptocurrencies, including SHIB and ETH.
Interestingly, institutional acceptance and adoption of crypto continues to rise despite the bear market. On Tuesday, Google announced that it will explore using Coinbase’s service for the storage and trading of cryptocurrencies. BNY Mellon said on Tuesday that it will add cryptocurrencies to the various assets it holds as a custodian. However, prices were not affected by these two giant developments. Oppenheimer analyst Owen Lau used the following statements:
These big companies believe in the potential of cryptocurrencies and Web3. It takes time to build them, but these companies are trying to expand their capabilities to make sure they won’t be left behind in 3-5 years. That’s why they take a long-term view.
Increasing interest from some large companies
Last month, Nasdaq launched a crypto custody service for institutions. Franklin Templeton, Betterment, Société Générale, and other asset managers have flocked to crypto. A year ago, news like this was stirring the crypto market. But now prices are largely macro-oriented. Still, prices will remain stable for a while, according to experts. According to experts, the Fed has influenced crypto with its interest rate hike plan. For this reason, investors think that the thing that will pull the field from the bottom is the FED.
