The cryptocurrency market shows activity amid Bitcoin's rise and the performance of altcoins. However, experts warn of potential risks.
Market Overview
In the past 24 hours, Bitcoin has increased by 2.1% and is trading around $113,144, sparking optimism among traders. Altcoins are also performing well, with Solana up more than 5% to $211.4 and Cronos surging 56.8% to $0.35. As a result, the overall cryptocurrency market cap has risen by 1.5% to approximately $3.99 trillion.
Peter Brandt's Warning
Renowned trader Peter Brandt warns that the current Bitcoin rally may be misleading. He notes that Bitcoin is in a distribution phase following the sell-off over the weekend. Brandt points to a potential double top and bearish divergence on the Relative Strength Index (RSI), which may indicate a possible recession.
> "Be prepared for the major options expiry on Friday! $BTC: $11.68B with max pain at $116,000; $ETH: $3.17B with max pain at $3,800." - CITE_NA
Macro Events and Their Impact
Traders are also gearing up for key macroeconomic developments. Data from Kalshi indicates a 78% probability that the Federal Reserve will cut rates by 25 basis points in September. Inflation data and the upcoming FOMC meeting are likely to guide further market direction. Additionally, Treasury Secretary Scott Bessent affirmed that the interviewing of eleven Fed chair candidates will commence after Labor Day. This comes amid President Donald Trump's ongoing influence on the Fed.
Despite the short-term surge in Bitcoin, Peter Brandt raises red flags. Options expiry, interest rate decisions, and regulatory changes may significantly impact whether the current rally holds.
