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Market Analysts Predict Market Movements

Aug 19, 2024
  1. Expert Commentary on Cryptocurrencies
  2. Will Cryptocurrencies Fall?
  3. Factors Influencing the Market

Recent evaluations by expert market analysts provide a broad perspective on the current situation. Addressing both macroeconomic and crypto outlooks.

Expert Commentary on Cryptocurrencies

Bitcoin's price stands at $58,600 and experienced further decline amid weekend low volumes. The lack of demand above $60,000 indicates that investors are still worried about significant drops. While altcoins are back in the red, traditional markets are doing quite well. Analysts wrote the following about the negative divergence in crypto and the current situation:

The market is eerily optimistic as US stocks are at all-time highs and Asian stocks are largely green today due to recent rate cut expectations and a soft landing. However, the options market still shows signs of tension as it prices in a 1% swing in the S&P 500 for Powell’s Jackson Hole speech this Friday. Unlike stocks, crypto sentiment is markedly bearish. BTC perpetual funding rates fell to -13% over the weekend, the lowest since 2022. The market seems to have overlooked the potential for more easing in the USD/JPY carry trade. Funds like Bloomberg and Vanguard have reportedly increased their bets on further BOJ hikes. Could this be another catalyst for a market downturn?

Will Cryptocurrencies Fall?

Concerns about a downturn centered in Asia have not completely disappeared. Although not as severe as earlier this month, investors in crypto might be pricing in potential interim downturns earlier. This week’s Jackson Hole talks are extremely important. Many government officials will provide comments and assessments on the global economy here.

Factors Influencing the Market

If Powell maintains a dovish tone at this week’s event, it could boost investor confidence. Indeed, easing in the employment front and concerns about excessive tightening should make signals of softening mandatory after a year of peak interest rates. Still, cryptocurrencies are full of surprises. The US could suddenly sell off its assets exceeding $10 billion, and even if all conditions are positive, things could turn around.

The importance of events in Jackson Hole and other external factors play a significant role in determining the direction of the cryptocurrency market.

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