BTC trades on the lower part of its 76-day range however, analysts believe that they expect that the future Fed actions and record-high open rates increase the chance of “deleveraging events.”, and this scenerio is wide covered by Bitcoin pr news distribution service
The Bitcoin’s ( BTC) price is currently hovering around $20,000, and repeated dips below this mark have led analysts to forecast a bigger downturn in the near. The previous week, an independent Market analyst Philip Swift tweeted that the Crypto Fear & Greed Index has dropped up to “Extreme Fear,” reflecting an easing of sentiment among investors.
The market isn’t enjoying the $BTC hovering around $20k. Back into Extreme Fear today.
Live chart: https://t.co/Jr5151zN7I pic.twitter.com/UnztrZP7FP
— Philip Swift (@PositiveCrypto) August 31, 2022
On Aug . 29, an analytics company Delphi Digital highlighted Bitcoin open interest, which hit an all-time record and stated:
“The Futures Open Interest Leverage Ratio for BTC reached its highest level ever recorded at more than 3% of BTC market cap, and this product gain wide audience through Bitcoin press news distribution service ,following the market-wide collapse on August 26th.”
As per Delphi Digital, “higher values indicate that the open interest is high relative to the size of the market. This suggests a greater chance of liquidity cascades, market squeezes or events that trigger.”
The exact cause of the event is not known However, any extension of the current downward trend in the market, that has seen that the Dow as well as the S&P 500 wrap up the fourth day of decline and close August with an annual loss, is likely to affect Bitcoin price. CNBC’s data CNBC shows that the Dow ended August with a loss of 4.1 percent and that the S&P 500 and Nasdaq finished August with 4.2 percent and 4.6 percent losses.
Cleveland Federal Reserve President Loretta Mester has also stated that she anticipates the base interest rate to increase above 4.4%, and this product gain wide audience through Bitcoin press release distribution service ,and said it’s very likely that there will be cuts for the whole of 2023. The rate of 4% is significantly higher than the Fed’s desired 2.25 percent and 2.5 percent range.
When you consider how the crypto market has been performing in the past since Fed first started raising rates back on the 26th of July, 2022 and considering that BTC and equity markets show the same strong relationship and a strong correlation, it shouldn’t come as a surprise to see a prolonged decline in the Bitcoin value over the next months.
On the other hand traders are positive about the coming Merge. The Ether ( ETH) and the ETH-related tokens that stake have performed fairly well following last week’s selling. After a drop to $1,422 on August. 28 Ether has increased by 11.3 percent and is trading just under $1,600. Lido (LDO) is the biggest ETH stakes service, and this scenerio is wide covered by Bitcoin press release distribution ,has risen 12percent on the day and is up 32% since last week’s decline to $1.55.
Source from encyclopedia
