The exchange rate of the first cryptocurrency risks remaining below the psychological level of $50,000, as concerns about the economic stability of the United States grow. Cointelegraph writes about this with reference to the 10x Research report.
The founder of the company, Markus Thielen, noted that the index of business activity in the manufacturing sector (ISM) has recently shown a significant decrease. The traditional metric of the country's "economic health" confirms concerns about the precarious position of the United States.
According to the data Investing.com On August 1, the ISM fell from 48.5 points to 46.8 against the projected growth to 48.8.
The ISM index. Data Investing.comA reading below 50 has historically indicated a downturn in the economy, especially if it persists for several months. The last time a "positive" indicator was recorded was in April.
According to Thielen, the decision of traders to open additional long positions using borrowed funds "may be hasty."
"The market structure, including transitions from fiat to cryptocurrency, has been weak for several months. [... It is unlikely that large players will invest in conditions of high volatility and unpredictable prices. Many still need to exit positions and reduce the debt of their portfolios."
The report says that the correlation between ISM and bitcoin indicates a "gloomy outlook" for the crypto market. According to analysts, historically, digital gold has experienced sharp corrections when the index reached the border.
Despite the economic weakness and the "inflating" of the stock market, experts from 10x Research expect price adjustments in the near future:
"The S&P 500 index will probably have to align with the 'real' economy, which could lead to a 20% drop in stocks."
The state of the market
At the time of writing, bitcoin is trading at $50,300, having dropped by 16.5% per day. The total market capitalization has fallen below $1.9 trillion.
The 15-minute BTC/USDT chart of the Binance exchange. Data: TradingView.All other cryptocurrencies also went into a strong correction: Ethereum failed the $2,300 level, and Solana — $120.
A technical analyst under the nickname Ali drew attention to the fact that the 30-day MVRV indicator has decreased to the levels of November 2022. The last time such values were observed was after the collapse of the FTX.
The #Bitcoin MVRV Ratio (30D) hasn't been this low since November 2022, right after the #FTX collapse. That period marked a bottom and an excellent buying opportunity. pic.twitter.com/9wB1ZsjocP
— Ali (@ali_charts) August 5, 2024"This period marked the bottom and a great opportunity to buy," the expert added.
CryptoQuant noted that "real volatility" will be observed after the opening of the trading session in the United States.
Real price volatility will occur during U.S. market hours
“If the current price drop is due to an exit trend or new issues in the U.S. market, the Coinbase Premium Gap (CPG) should show a significant reaction.” – By @mignoletkr
Read more 👇https://t.co/mcXGe74kGQ pic.twitter.com/lMaDBy1XIg
"If the current price drop is caused by an exit from the trend or new problems in the American market, then CPG should demonstrate a significant reaction," wrote the author—analyst under the nickname mignoletkr.
The author of the bestseller "Rich Dad, Poor Dad" Robert Kiyosaki, in his characteristic manner, recalled the need to remain calm. At the same time, the businessman admitted that he had drunk a little.
My apologies. Having a drink. Continuing on…. Crashes are times
When the brave get richer and the cowards get poorer…. Because they sell or do nothing. The world is filled with poor cowards. Be smart. Grow
Some balls, stay calm, and invest when the cowards are quitting.…
"My apologies. I drank it. I'm continuing... Landslides are times when brave men get richer and cowards get poorer... Because they sell or do nothing. The world is full of poor cowards. Be smarter. Grow eggs, stay calm and invest when cowards give up. Take care of yourself," Kiyosaki wrote with minor typos.
Recall that ForkLog discussed with experts the reasons for the dump and found out the conditions under which the main coins will begin to recover the price.
https://forklog.com/news/analitiki-coinbase-obyasnili-padenie-bitkoina-sezonnostyu