The crypto market saw significant declines in the last 10 days with the mid-term and long-term expectations hit severely. First, a market-wide selloff led by whales and miners saw Bitcoin and Ethereum prices dive below $21,000 and $1550. Then, Fed Chair Jerome Powell’s hawkish stance pushed Bitcoin and Ethereum prices even lower. Data suggests the crypto market may likely witness another sell-off amid a possible 75 bps rate hike in September and bearish futures.
Another Crypto Market Sell-Off in September
The crypto market has turned more bearish as top cryptocurrencies, Bitcoin and Ethereum, continue to decline below the key psychological levels. Wall Street banks including Bank of America, Goldman Sachs, and UBS expect at least 100 bps rate hikes by year-end.
Wall Street experts predict a 50 or 75 bps rate hike in September and 25-25 bps rate hikes in November and December. While Fed Chair Jerome Powell reaffirms sharp rate hikes to curb inflation, he also confirms slow rate hikes under favorable conditions.
According to the CME’s FedWatch Tool, a 75 bps rate hike in September has a 66.5% probability and a 50 bps rate hike has just a 33.5% probability.
The investors now have bearish sentiment as mid-term and long-term expectations are negative. The BTC and ETH options and futures are bearish as the September expiry may witness billions in liquidations.
However, a sharp rate hike in September will most likely depend on the CPI data on September 13, with the Fed expecting a decline in commodity prices.
Another Bearish Factor
The crypto market may be witnessing several bearish factors pushing prices down. However, the dormant bitcoins movement after several years is an important bearish signal.
5000 BTC dormant for 7-10 years were sold in a single block. It is potentially important in terms of market timing as the crypto market continues to decline. Previous dormant bitcoin movements this year were followed by a downturn. Thus, the crypto market may witness further downside in September, and crypto prices may retest July lows.
The post Breaking: Data Suggests Crypto Market May Witness Another Sell-Off appeared first on cryptotimes24.com.