Bitcoin had a disappointing week close as it officially lost the key $20,000 threshold. The market is forecasted to have many negative fluctuations in the near future.
At the end of last week’s trading session, Bitcoin at one point dropped below $20,000, officially creating a weekly bottom at $19,610. As of right now, the largest cryptocurrency in the market is at $19,885, down 7.4% on a weekly time frame. Trading volume during the weekend reached $26.36 billion, down more than 8% in the previous 24 hours.
After the speech of the Chairman of the US Federal Reserve (FED) – Jerome Powell at the annual Jackson Hole Economic Symposium, the entire financial market in general and the cryptocurrency market in particular had a positive momentum. strong slope. Over $240 billion has been removed from the crypto market, many projects seeing double-digit declines. Uncertainty is pervading the industry as investors become increasingly distrustful of tokens.
Bitcoin price is currently 71% below its all-time high (ATH) at $69,045 recorded on November 10, 2021. Over the last three down cycles, BTC has consistently seen declines. strong in which short rallies have almost no results.
The current trend mentioned by many investors is to bottom Bitcoin below $20,000. Comments on a negative scenario suggest that BTC price will continue to plunge to the $16,000 – $17,000 zone.
The market-leading altcoin, Ethereum, is also struggling against a downward trend despite the approaching start of the merger event – The Merge. At the end of the week, ETH bottomed at $1,430, down 9.22% from the same time last week. The daily trading volume dropped sharply with -16.17%, showing that investors are afraid of decisions in the market.
Tokens in the top 10 by market capitalization continue to suffer an even stronger downward momentum than BTC and ETH. XRP -3.19%, ADA -2.86%, SOL -2.17%, DOGE -2.15%.
On the altcoin side, only 10 tokens in the top 100 are seeing the green, and eCash (XEC) is led by over 30% on the day and making 21% on the week. Some bullish altcoins including SNX (+4.4%), CAKE (+2%) and LTC and XMR are all making around 1% returns.
However, the rest are all in the dark with AVAX dropping the most on the day as it is losing 10% while the altcoin’s weekly loss is up to 20%. This is followed by EOS and ATOM which are both down 8% in the last 24 hours, while AR, FLOW, GMT and ETC are losing 6% in the same time frame.
The psychology of investors in the market is very chaotic after the recent strong correction. The Cryptocurrency Market Greed and Fear Index (FGI) plunged from 28 to 24 and started to sink into the Extreme Fear zone.
After US Federal Reserve Chairman Jerome Powell offered his view on further rate hikes, Wall Street was rocked and at the close of Friday’s trading session, all three major benchmarks ( The S&P 500, Dow Jones and Nasdaq Composite) all fell more than 3%. Nasdaq was the biggest loser on Friday, losing 3.94% – marking its worst loss since mid-June.
The S&P 500 fell 3.37% to close for the day at 4,057.66 points and the Dow Jones Industrial Average fell more than 1,000 points, or about 3.03%. The Cboe Volatility Index (VIX) rose 3.78 points after Powell’s 10-minute speech. The Nasdaq volatility has shown volatility similar to the VIX.
Opinions from many experts and investors believe that the global market will only get worse. The chief strategist at bubbathrading.com, Todd ‘Bubba’ Horwitz, said in a recent interview that the stock market could drop another 50% from here on. Horwitz attributed his forecast to the Fed raising interest rates amid widespread belief that the US economy is in recession.
Horwitz further notes that financial moves could involve the controversial Great Reset.
“The US central bank is raising interest rates during a recession. This has never happened in history… There is a political agenda behind all this, which is to try to create the Great Re-establishment. Biden is looking to get things right. There will be no more middle class.”
Horwitz also spoke about Powell’s commentary at the Jackson Hole Symposium in Wyoming. He said “Powell’s comment is like a fool,” noting that at last year’s Symposium, Powell had stated that inflation was temporary.
“Powell is trying to stay away from what is coming, which is hyperinflation. Wait until oil prices start to skyrocket again. What do you think will happen to inflation then? We will be short of food this year.”
The bubbatrading.com analyst concludes that equities will suffer but there could still be some opportunity in the commodity markets.
“Overall, I would expect to see a 50-60% drop in equity markets.”
The President of the European Central Bank (ECB), Christine Lagarde, asserts that hot inflation in the region can be blamed on climate change. In the interview with Madame Figaro, Lagarde emphasized that people need to be aware that “climate catastrophe” greatly affects price stability.
Largarde is not the only one to connect inflation to climate change and weather patterns around the world. On August 15, the New York Times published an editorial about how specific policies can combat inflation by fighting climate change at the same time. The Biden administration is following a similar trend, as the recently implemented “Inflation Reduction Act” bill claims to reduce inflation by fighting climate change.
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