Amidst corrections and numerous liquidations, Bitcoin and altcoins have faced significant price drops. Asymmetric volume changes and economic data expectations have pressured the market.
Loss of Confidence in the Market
Bitcoin has fallen to around $110,000, which dragged down the entire cryptocurrency market. Major factors include large position liquidations and increased short-term volatility. Analysts note that this decline has been the result of strong downward pressure.
Increased Volatility in Cryptocurrencies
Volatility indicators have started to rise. For instance, Bitcoin's daily implied volatility jumped from 15% to 38%, while Ethereum’s increased from 41% to 70%. The spike in volatility is attributed to investors rushing to hedge their positions ahead of key economic news.
Analysts’ Predictions for the Near Future
Sean Dawson from Deribit believes Bitcoin could retest the $100,000 level by the end of September, and Ethereum could revisit $4,000. He pointed out that options traders have begun favoring put options, indicating a bearish trend.
Recent shifts in the cryptocurrency market reflect a high degree of uncertainty among investors awaiting significant economic data. Analyzing the current situation may help make more informed decisions moving forward.
