Market sentiment remains sensitive, and volatility in the cryptocurrency market will continue | Matrixport Market Observation
The fear and greed index is fluctuating, and the market is overly sensitive to data or information feedback. Market volatility will continue, and it is recommended that investors diversify their investments and pay attention to risk management.Market Trends
In the past week, the BTC price has generally shown a trend of consolidation. Although it triggered a unilateral decline on the 16th, reaching a low of $56,078 with a maximum drop of 6% on that day, BTC's price rebounded relatively strongly afterward, returning to $58,000. As of the publication of this content, BTC bulls have broken through the resistance level of $60,000, with a price of $60,854 (the above data is sourced from Binance spot, August 20, 15:00). The price trend of ETH is similar to that of BTC, with most crypto assets following BTC's movements. According to Trading View, the overall market capitalization of cryptocurrencies is $2.014 trillion, with BTC accounting for 57.16%.
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Market sentiment is sensitive, and the butterfly effect may intensify
The Fear and Greed Index is fluctuating, further highlighting the market's sensitivity and fragility. The public is caught in a cycle of doubt about whether the economy is entering a recession, urgently needing more data to substantiate claims. In a highly sensitive market environment, not only changes in macro data can amplify market volatility, but any data change or timing could also lead to significant market fluctuations.
The crypto market has recently lacked supportive hotspots, compounded by the earlier expectation that Trump would win the polls, which are now trailing Harris. This has increased the difficulty of realizing significant bullish outcomes for BTC this year. Additionally, the number of net outflow days for BTC spot ETFs increased last week, with a net inflow value of only $32 million. Despite the good performance of U.S. stocks, institutional investors' interest in BTC has declined.
The Federal Reserve's meeting minutes will be released on Wednesday, with the market expecting a 78% probability of a rate cut
Data from the CME FedWatch tool shows that traders currently expect a 78% chance of the Federal Reserve cutting rates by 0.25% at the 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 from the Fed's most recent meeting will be released on Wednesday, which may bring new volatility to the crypto market.
The Democratic Party has yet to clarify its stance on crypto assets, while Trump continues to throw out gimmicks to attract young voters
According to Fox Business reporter Eleanor Terrett, the U.S. Democratic Party officially released its party platform on the first day of its national convention, but it did not mention blockchain technology, Bitcoin, digital assets, or anything related to crypto. The market continues to pay attention to Harris's personal views on crypto assets. Trump is trying to continue attracting crypto enthusiasts and young voters, stating that if elected as the next U.S. president, he would consider eliminating the $7,500 electric vehicle tax credit; he would also consider appointing Elon Musk to a cabinet or advisory role if he is willing.
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As market panic over a potential U.S. economic recession diminishes, global stock markets are returning to historical highs, resulting in a certain degree of liquidity withdrawal from crypto assets. Although crypto assets lack supportive hotspots, with BTC breaking through the $60,000 resistance level and stabilizing, a small upward movement for BTC cannot be ruled out. In light of the current high volatility, it is recommended that investors diversify their investment risks and seek rational and stable returns.
For capital preservation investors, considering Shark Fin and Trend Smart Win could be beneficial. Matrixport's Shark Fin and Trend Smart Win products offer both cost protection and the potential for gain, supporting BTC-USDT and ETH-USDT trading pairs, with investment periods ranging from 7 to 90 days.
For mature opinion-based investors, Snowball products may maximize gain. If users believe the market direction will fluctuate within a certain range and have sufficient data to support this, Snowball products are a good choice. When the Snowball products purchased by users fluctuate between selected prices, the returns will grow like a snowball rolling in the snow. Matrixport offers bullish Snowballs for USDT, BTC, and bearish Snowballs for BTC. Users can exercise their options on any date after successful purchase.
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Disclaimer: The above content does not constitute investment advice, sales offers, or purchase offers to residents of the Hong Kong Special Administrative Region, the United States, Singapore, or other countries or regions where such offers or invitations may be prohibited by law. Digital asset trading may involve significant risks and volatility. Investment decisions should be made after careful consideration of personal circumstances and consultation with financial professionals. Matrixport is not responsible for any investment decisions made based on the information provided herein.
