The market of cryptocurrencies continues to face constant pressure. The price of Bitcoin(BTC) registers a moderate fall and is slightly above 26,700 DollarsMeanwhile he Ethereum (ETH) cannot recover the brand of the 1,600 dollars.
Digital assets continue to suffer due to decline risk appetite and the rebound in US Treasury bond yields. Recently, the yield on 10-year US government securities reached levels not seen since 2007, and German bond yields reached their highest levels in the last decade. In additions, the strength of the dollardriven by new prospects for a possible increase additional interest rates by the Federal Reserve (Fed), has also influenced prices.
This situation affects cryptocurrencies since the last Fed monetary policy meeting, which took place exactly a week ago. During that meeting, the president Jerome Powell and his team sent a more aggressive than expected message to the market, indicating their willingness to further harden their stance if necessary.
According to the tool data FedWatch of CME, despite the reluctance of the consensus regarding a rise in Interest rates For the remainder of the year, risk has decreased and both equities and digital assets have suffered. Specifically, the Fear & Greed Index is in the territory of “fear“, reflecting the lack of appetite for risk, but it also signals buying opportunities at current prices.
Nonetheless, There are those who believe that interest rates could rise significantly. This Tuesday, Jamie DimonCEO of JP Morgan, admitted in an interview that the world “I was not ready“for a scenario with Fed interest rates at 7%, a scenario that is not ruled out and that could be more damaging to the economy than the escalation from 0% to 5%.
Bitcoin: US regulator helps crypto find no relief
Besidesit is relevant to mention that exchange-traded funds BTC Spot ETFs will not provide support to cryptocurrencies in the short term. Recently, the SEC extended the deadline for making decisions on the GlobalX and ARK Invest ETFs, which were due in early October and early November, respectively.
All of this, explains James Harte, market analyst at TickMill Group, has led to Bitcoin enthusiasts “not finding relief as we approach the end of the quarter.” “After the rally of the last two weeks, BTC prices have fallen again, restrained by local resistance. Despite a strong start to the year, bullish momentum faded in April and despite fresh momentum in rise in July, prices have cooled around 20% from the highs of the year,” he points out.
Harte suggests that, with the Fed focused on a narrative of “higher for longer“, BTC is likely to “remain hampered” until that outlook changes. For this week, there are a number of key US data points that could influence market action: Final GDP, Weekly Unemployment, Core PCE and Sentiment from the University of Michigan, plus Powell’s speech tomorrow.
In the rest of the market, the ‘altcoins‘ are showing a similar behavior, highlighting the considerable losses of 2% in the sun (SOL).
Source: Ambito
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