Bitcoin (BTC) has failed to surpass the $70,000 mark for the sixth consecutive attempt, reinforcing predictions of continued range-bound trading. Meanwhile, Ethereum (ETH) is showing signs of strength as outflows from the Grayscale Ethereum Trust (ETHE) begin to taper off.
According to a recent report by QCP Capital, there has been a surge in macro volatility. The NASDAQ experienced a 10% decline from its peak due to a pullback in the tech stocks known as the “Magnificent 7.” Additionally, the VIX volatility index saw a spike to 19.50. This is after consistently trading between 12 and 14 over the past two months.
Market uncertainty arises from various factors, like Value at Risk (VaR) shocks prompting traders to adjust positions, overvalued equities missing earnings targets, and a prevailing global risk-off mood. The recent 8% drop in Microsoft shares after-hours. Due to the AI cloud, revenue shortfall serves as a prime example of these concerns.
Crypto markets are preparing for heightened volatility ahead of the upcoming Federal Open Market Committee (FOMC) meeting. Although no interest rate reduction is anticipated. All eyes will be on the official statement and the subsequent press conference led by Fed Chair Jerome Powell. The prevailing expectation envisions a single rate decrease in both September and December.
In a promising turn for the Ethereum ecosystem, spot ETFs experienced a positive inflow of $33.7 million, propelling ETH prices ahead, which had been trailing Bitcoin. Nonetheless, analysts anticipate ongoing withdrawals from ETHE in the upcoming fortnight.
Concerns arose in the market due to the recent transfer of 30,000 BTC by the U.S. government in connection with the Silk Road case, stirring speculation about its potential impact on the market.
Potential Bitcoin surge in August
Analyst CryptoCon shared insights on X, hinting at a potential Bitcoin surge in August based on past halving patterns. Referencing historical data, the analyst pointed out a recurring trend of “echo highs” following major peaks within each cycle year. August is earmarked as a possible contender for the upcoming peak in the current cycle.
Nevertheless, with FOMC meeting approaches and global economic uncertainties persist, market players anticipate with keen interest any upcoming cues that could impact the values of digital assets in the near future.
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