Decrease in Macro-Anxiety Leads to Reduced Trading Volumes in Crypto Market
In the current crypto market, both spot and derivative exchange trading volumes have seen a decline due to macroeconomic anxieties. The recent hawkish stance of Federal Reserve officials has raised concerns about the possibility of high interest rates being sustained.
Bitcoin Whales Continue Accumulating
Despite the market uncertainties, large whales have taken advantage of the Bitcoin price fluctuating between $61,000 and $64,000 in the last 24 hours. Data from the on-chain data platform Santiment reveals that investor groups owning between 1,000 and 10,000 BTC have accumulated over 15,000 BTC, valued at $941 million. Even with the price drop to $62,000, the whales have not stopped accumulating BTC.
The significance of these purchases made by whales cannot be ignored, as it indicates a bullish outlook for the entire crypto market. In fact, whales have reached their highest hodl level in the past two weeks, adding optimism to the rise of Bitcoin. However, the prevailing uncertainty in the market seems to be prolonging the consolidation process.
Fed’s Impact on Bitcoin Price
The recent statement made by Boston Fed President Susan Collins has caused further concerns in the crypto market. Collins mentioned that interest rate cuts might take longer than expected, as the US needs slower economic growth to combat inflation, which could potentially decrease demand. This hawkish stance, despite Fed Chairman Jerome Powell’s dovish approach and last week’s economic factors, has created anxiety among crypto investors.
According to data from the CME FedWatch Tool, it is likely that the US Fed will start reducing interest rates in September, with the possibility of further cuts of 25 basis points in November and December.
Possible Bitcoin Price Drop
During US trading hours, the Bitcoin price dropped below $62,000 as traders took profits or liquidated their long positions. Today, the BTC price experienced a drop of over 5%, and in the last 24 hours, it decreased by over 1%. Additionally, there has been a decrease in trading volume in the past 24 hours.
Kaiko, a major research firm in the market, highlights that meme tokens, such as dogwifhat (WIF) and Pepe Coin (PEPE), remain the top leveraged altcoins due to significant accumulation by whales and other investors. These investors continue to buy meme coins in the current bull market, expecting their prices to rise.
Disclaimer: This article does not provide investment advice. Investors should be aware of the high volatility and risk associated with cryptocurrencies and should conduct their own research.