Data suggests the crypto market may witness another sell-off

The crypto market saw significant declines in the last 10 days and medium and long-term expectations were severely affected. First, a market-wide sell-off led by whales and miners saw Bitcoin and Ethereum prices plunge below $21,000 and $1550. Then Fed Chairman Jerome Powell’s aggressive stance pushed prices further. of Bitcoin and Ethereum. The data suggests that the crypto market is likely to witness another sell-off amid a possible 75bp rate hike in September and bearish futures.

Another crypto market sell-off in September

The crypto market has turned more bearish as major cryptocurrencies Bitcoin and Ethereum continue to drop below key psychological levels. Wall Street banks including Bank of America, Goldman Sachs and UBS expect rate hikes of at least 100 bps by the end of the year.

Wall Street pundits predict a rate hike of 50-75 bps in September and 25-25 bps in November and December. While Fed Chairman Jerome Powell reaffirms strong rate hikes to curb inflation, he also confirms slow rate hikes under favorable conditions.

According to CME’s FedWatch tool, a 75bps rate hike in September has a 66.5% chance and a 50bps rate hike has only a 33.5% chance.

Investors now have a bearish sentiment as medium and long-term expectations are negative. BTC and ETH options and futures are bearish as the September expiry may witness billions in liquidations.

However, a sharp rate hike in September will likely depend on CPI data on September 13, with the Fed expecting a drop in commodity prices.

Another bearish factor

The crypto market may be witnessing various bearish factors pushing prices lower. However, bitcoins sluggish movement after several years is a major bearish sign.

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5000 BTC idled for 7-10 years were sold in a single block. It is potentially important in terms of market timing as the crypto market continues to decline. Previous idle bitcoin moves this year were followed by a downturn. Therefore, the crypto market may see a further drop in September, and crypto prices may retest the July lows.

Varinder is a technical writer and editor, technology enthusiast, and analytical thinker. Fascinated by disruptive technologies, he has shared his knowledge of Blockchain, Cryptocurrencies, Artificial Intelligence and the Internet of Things. He has been associated with the blockchain and cryptocurrency industry for a considerable period and currently covers the latest updates and developments in the cryptocurrency industry.

The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication bears no responsibility for your personal financial loss.

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