Matrixport Market Observation: Market sentiment remains sensitive and volatility in the crypto market will continue

Market Trends

In the past week, the price of BTC has generally fluctuated sideways. Although it triggered a unilateral decline on the 16th, reaching a minimum of $56,078, with a maximum decline of 6% on the day, the subsequent BTC price rebound was relatively strong, and the price returned to $58,000 on the day. As of the publication of this article, BTC bulls have broken through the $60,000 resistance level, with a price of $60,854 (the above data comes from Binance spot, August 20 15:00). The price trend of ETH is similar to that of BTC, and most crypto assets follow the decline and rise of BTC. Trading View data shows that the overall market value of cryptocurrencies is 2.014 trillion US dollars, and BTC accounts for 57.16%.

Market Analysis Hot Spots Follow-up

Market sentiment is sensitive, and the butterfly effect may intensify

The vacillation of the Fear and Greed Index further highlights the sensitivity and fragility of the market. The public is caught in a cycle of doubt about whether the economy has entered a recession and urgently needs more data to verify and authenticate. In a highly sensitive market environment, it is not just changes in macro data that will amplify market fluctuations. Any data changes or time may cause drastic changes in the market.

The crypto market lacks hot spot support recently. In addition, Trump, who is expected to be elected, lags behind Harris in the polls. It is more difficult for BTC to realize the big positive news this year. At the same time, the number of days with net outflows of BTC spot ETF increased last week, and the net inflow value was only 32 million US dollars. Under the premise of the good performance of US stocks, institutional investors interest in BTC has declined.

The Fed meeting minutes will be released on Wednesday, and the market expects a 78% chance of a rate cut

Data from the CME FedWatch tool shows that traders currently expect a 78% chance of a 0.25% rate cut at the Feds September meeting, a 59% chance of a 50 basis point cut in November, and a 42% chance of a 75 basis point cut in December. The minutes of the Feds most recent meeting will be released on Wednesday, which could bring new volatility to the crypto market.

The Democratic Party has not yet expressed its attitude towards crypto assets, and Trump continues to throw out gimmicks to attract young voters

According to Fox Business reporter Eleanor Terrett, the Democratic Party of the United States officially released their party platform on the first day of its National Convention, but it did not mention blockchain technology, Bitcoin, digital assets or anything related to cryptocurrencies. The market continues to pay attention to Harris personal views on crypto assets. Trump tried to continue to attract crypto enthusiasts and young voters, saying that if he is elected as the next US president, he would consider canceling the $7,500 electric vehicle tax credit; he would also consider letting Elon Musk serve as a cabinet or advisory role if he is willing.

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As the markets fear of a US recession subsides, global stock markets are returning to historical highs, causing a certain degree of liquidity withdrawal from crypto assets. Although crypto assets lack hot support, as BTC breaks through the $60,000 resistance level and stabilizes, it is not ruled out that BTC may usher in a small wave of increases. In the face of the current high volatility, investors are advised to diversify investment risks and seek rational and stable returns.

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For mature opinion investors, Snowball products may maximize their gains. If users believe that the market trend will fluctuate within a certain range and there is sufficient data to support it, Snowball products are a good choice. When the Snowball products purchased by users fluctuate forward between the selected prices, the gains will be like a snowball rolling in the snow, rolling more and more. Matrixport provides USDT bullish snowballs, BTC bullish snowballs, and BTC bearish snowballs. Users can exercise their rights on any date after the purchase is successful.

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Disclaimer: The above content does not constitute investment advice, an offer to sell, or a solicitation of an offer to buy to residents of the Hong Kong Special Administrative Region, the United States, Singapore, and other countries or regions where such offers or solicitations may be prohibited by law. Digital asset trading may be extremely risky and volatile. Investment decisions should be made after careful consideration of personal circumstances and consultation with financial professionals. Matrixport is not responsible for any investment decisions based on the information provided in this content.

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