The leading cryptocurrency Bitcoin (BTC) is up 0.14% today compared to yesterday, which may not sound like much, but just an hour ago, the coin was down 0.09% from the previous day.
There is a bullish trend happening, and crypto investors should know about it. Bitcoin is trending as a topic right now, with increasing interest from presidential candidates in the US. It’s also being mentioned on the Joe Rogan Experience podcast, and it’s now being offered on Hawaii-based crypto exchanges for the first time in years.
It’s fair to say that Bitcoin and the broader crypto market are on a rebound. We saw a minor market crash on Tuesday that saw Bitcoin fall from $61,849 to $57,974, but the market has managed to recover much of that. That drop caused a 4.2% drop in the broader crypto market cap, wiping out $2.21 trillion. Many investors saw this as an excellent opportunity to invest while prices were low, and they did.
After many investors bought the dip, the market started to boom again, and we are now seeing growth from almost every major cryptocurrency. Ethereum (ETH), Solana (SOL), Dogecoin (DOGE), and many others are now up, despite being down just an hour ago. The bullish trend has started, and no one can say for sure how long it will last.
Since we are now witnessing the beginning of this bullish swing, there is a possibility that Bitcoin and other cryptocurrencies will rise to much higher levels. We may simply be witnessing a price correction, meaning that the rise will soon stop. If the latter is the reason for the rise, we will see a longer tail to this uptrend. Investors still have the opportunity to take advantage of some of these gains before they stop
Bitcoin struggles at $60,000 as US economic data comes in
The cryptocurrency market continues its volatile movement. Bitcoin has yet to reach the $73,777 level it achieved in March. The $70,000 level has been surpassed several times, but the bulls have been unable to push the price higher. Before the data from the US, Bitcoin was struggling at the $60,000 level.
Today, two crucial data points were announced from the US. The first data point was the GDP Price Index. The data was announced at 2.5%. The data seems to have exceeded expectations, which were at 2.3%. Access COINTURK FINANCE for the latest financial and business news.
The second data point was the unemployment claims data. Accordingly, the data was announced at 231K. The forecast for the data was 232K. The data seems to have fallen short of expectations.
After the data, looking at the price of Bitcoin, the leading cryptocurrency, we see that the price of Bitcoin is trading at $60,325. We can say that the data had a slight positive impact on the price of Bitcoin.
On the political front, the US presidential race adds more uncertainty to the mix. Kamala Harris now leads Donald Trump by a narrow margin, and her shift from left-wing to more centrist policies raises a lot of questions about future economic policies.
Crypto traders are particularly interested in what Kamala might do on corporate taxes, which could affect market sentiment. If she wins and decides to roll back the favorable corporate tax cuts from the Trump era, we could see some turmoil in both the stock and crypto markets.
Corporate buybacks are set to begin soon, and are expected to add around $5 billion in demand to the stock, according to Goldman Sachs. For crypto spread between the bid and ask price of Bitcoin tends to be riskie
Crypto Markets Tense as Put Options Tilt
Crypto markets are feeling very cautious today, with a clear bias towards put options on both Bitcoin and Ether. Last night’s impressive earnings report from Nvidia sparked a classic “sell the news” reaction, and left Ethereum stuck around $2,500.
The Nvidia hype is over and now we’re left with a nervous and risk-averse market. Overnight, the market saw a spike in forward volatility as spot prices of Bitcoin and Ether fell.
This volatility quickly calmed down after Nvidia’s earnings, falling about 10 points from its peak. According to QCP analysts, the market remains biased towards put options on both Bitcoin and Ether, at least until October. This means that traders are preparing for further downside, not betting on a major rebound.
With the US non-farm payrolls report due next week, we could see further volatility declines as markets settle into what looks like a long wait for the Fed to act.
Tonight’s US GDP report could be a sleep-fest for crypto unless it provides fresh insight into the slowing US economy.
With no real catalysts on the horizon, Bitcoin and Ethereum look set to continue to slide sideways as we head into September.
Markets took Fed Chair Jerome Powell’s recent speech as a hint that there could be as many as four 25bp cuts by the end of the year, and potentially eight by September 2025.
Nansen analysts believe this is the Fed coming back to play. While stock markets may favor such a move, crypto is still feeling the heat.
The Bank of Japan is taking a different approach, gradually raising interest rates while monitoring market stability. Other major central banks appear to be on a easing path or holding steady for now, which may explain why some investors are holding onto their crypto positions.
