Ever since the market collapsed with the LUNC & UST crisis in May, the markets remain pretty uncertain. Bitcoin lost its grip, continues to slip after every minor spike. Now when the monthly close is fast approaching, most of the assets are gearing up.
However, the upcoming month is still expected to slash the price to a large extent, probably dragging the global market capitalization below $900 billion soon.
The crypto markets witnessed a huge sell-off in the past 10-12 days, initially led by whales & miners. The BTC & ETH prices dropped below $21,000 & $1500 respectively that were further slashed by Fed Chair Jerome Powell recently.
In a recent update, data suggests that the crypto market is likely to drop as the interest rates could be hiked by another 75 bps in September. The Fed Chair in his speech had hinted about the stringent actions to be taken to curb rising inflation, and it appears that raising interest rates may continue for a long time.
A Short-Term Bounce May be Underway!
However, considering the present rebound, the crypto markets are expected to recover not more than 5% and eventually drop into a deep bearish weel ahead.
The total market cap soon after Powell’s speech recently broke down from the rising parallel channel, marking new monthly lows. However, the analyst here believes that the market cap may recover above $1 trillion again but may follow a retest.
Currently, the investors still carry a bearish sentiment for the mid-term & long-term, regardless of the recent price actions. On the other hand, Bitcoin & Ethereum options & futures are also bearish billions of them may be liquidated this upcoming month. Additionally, fresh CPI data will be out on September 13, which may further trigger a bearish trend ahead.