The latest US macro data has sparked hopes of 'greener shoots' in the crypto market, with renewed net inflows to US spot Bitcoin exchange-traded funds (ETFs) and a softening in hawkish expectations of interest rate hikes by the Federal Reserve. However, the past seven Mondays have seen major price weakness, with trader Killa warning that the same pattern could repeat itself next week.
DATA & FIGURES
The $62,700 level is a key long-term trend line, with the 200-week simple moving average (SMA) remaining a crucial level to watch. The latest data from CoinGlass puts the 24-hour crypto total at $167 million, with trader Daan Crypto Trades flagging short position liquidations as the price gained. The US spot Bitcoin exchange-traded funds (ETFs) saw $224mn in net inflows on Thursday, their first positive print in over a week.
THE SCENARIO
The overarching scenario is one of cautious optimism, with the latest US macro data sparking hopes of 'greener shoots' in the crypto market. However, the Federal Reserve's interest rate hike expectations remain a key factor to watch, with a near-80% chance of the Fed holding rates at current levels at its July 29 meeting.
DIRECT QUOTE
"7/7 Mondays have been absolutely terrible for $BTC. Will we repeat the exact same pattern next week?" — Killa, Trader
BBN INSIGHT
The Positive Side: The latest US macro data has sparked hopes of 'greener shoots' in the crypto market, with renewed net inflows to US spot Bitcoin exchange-traded funds (ETFs) and a softening in hawkish expectations of interest rate hikes by the Federal Reserve. This could lead to increased investor confidence and a potential price boost for Bitcoin. The Negative Side: The past seven Mondays have seen major price weakness, with trader Killa warning that the same pattern could repeat itself next week. This could lead to a decrease in investor confidence and a potential price drop for Bitcoin. Additionally, the Federal Reserve's interest rate hike expectations remain a key factor to watch, with a potential rate hike leading to decreased investor confidence and a potential price drop for Bitcoin.
MARKET REACTION
The price of Bitcoin has been consolidating near two-week highs, with the $63,000 mark hanging in the balance. The latest data from CoinGlass puts the 24-hour crypto total at $167 million, with trader Daan Crypto Trades flagging short position liquidations as the price gained.