A significant number of cryptocurrency investors, who are aware of an upcoming major event, have been selling their assets for some time now. The direction of the market remains uncertain, but when prices remain stagnant for an extended period, they usually end up breaking out eventually. This has led an on-chain analyst to issue a warning, comparing the situation to a time bomb in the crypto market.
Axel Adler Jr, a popular on-chain analyst who shares his assessments on CryptoQuant, focuses on analyzing unrealized profits and losses. Based on his observations, he has issued a time bomb warning. In his latest evaluation, he wrote about “STH whales,” which refers to large short-term investors who make significant purchases. This term also includes ETF issuers’ reserves, with traditional market investors having control over a total reserve of $50 billion in the ETF channel.
Another expert from CryptoQuant, Mignolet, pointed out that the fundamental cost of Bitcoin is $64,000. If the market fails to reverse its current trend quickly, it could lead to the explosion of the time bomb at the entrance, causing significant repercussions.
The crypto market has a busy agenda this week, with key data set to be released. Alongside the PPI and CPI data, investors will closely follow the statements of Fed Chairman Powell over two consecutive days. The continued decline in inflation is crucial and could be one of the most significant events to motivate risk market investors in the near future.
According to FedWatch, the market interest rate forecast for July remains stable. However, the recent downward revision of the Non-Farm Payroll data reflects the Fed’s desire for relaxed employment conditions, which has led to expectations of two total 50bp cuts before the end of this year.
It is important to note that the information provided in this article should not be considered as investment advice. Cryptocurrencies are highly volatile and carry a significant amount of risk. Investors should conduct their own research and exercise caution when dealing with cryptocurrencies.