🚨👀The question that puzzles many is whether the cryptocurrency market has reached its lows or will continue to decline?🤔
💡💡💡The cryptocurrency market has just gone through a period of anxiety as the FGI index dropped to fear levels, but short-term forecasts are considered more positive after expert predictions.👀👇✅
Purchasing power has declined amid major macro events, but many analysts believe that Bitcoin prices may have reached their lows in the near term, with expectations of recovery if the Fed Chair maintains a dovish stance at the Jackson Hole conference.👀💡👇✅
The market is experiencing strong volatility due to changes in investor sentiment in response to macro events.✅
The sharp decline in purchasing power of cryptocurrency ETFs and treasury bonds has led to liquidations of over a billion dollars.✅
Experts like Tom Lee say that Bitcoin and Ethereum have reached their bottom, and they expect recovery if the Federal Reserve maintains positive signals.✅
🚨What has the cryptocurrency market been through recently?💡👀👇
The cryptocurrency market experienced strong volatility last week, as the fear and greed index dropped to 45 (fear) before recovering to 50 (neutral) due to expectations surrounding Federal Reserve Chairman Jerome Powell's speech at the Jackson Hole event.✅
This development came after the release of the minutes from the July Federal Open Market Committee (FOMC) meeting, increasing investor caution regarding short-term investment decisions. Macroeconomic factors played a key role in shaping cryptocurrency trading trends last week.✅
"Investors often shift from fear to hope in just a few days when the cryptocurrency market faces major political events."✅
Erik Voorhees, CEO of ShapeShift, 2023, CoinDesk
🚨What does the fear and greed index reflect on market sentiment?💡👀👇✅
The fear and greed index, which measures investor sentiment, reached the fear zone at 45 points before the release of the FOMC meeting minutes, then returned to 50 points as the Jackson Hole conference approached, reflecting anxiety but also expectations for new developments.✅
Market sentiment is always influenced by the signals of interest rate policy followed by the U.S. Federal Reserve. A rebound in the FGI index to neutral indicates that investors are still waiting for accurate information to make their next decision.✅
"The cryptocurrency market reacts faster than stocks to major events issued by the Federal Reserve, as evidenced by the strong fluctuations in the fear and greed index."✅
Cathie Wood, CEO of Ark Invest, 2023, Bloomberg
🚨Is this a sign that Bitcoin and Ethereum have reached their bottom?💡👀👇
According to experts like Tom Lee, the recent series of declines may have helped Bitcoin and Ethereum to form a short-term bottom, especially as Ethereum's price rose by 6% after bouncing from the $4000 area, while Bitcoin recovered from $112300 during the week.✅
Although the market just experienced a correction of less than 10% due to profit-taking and macro pressures, many analysts still believe that positive signals are returning, based on the increased option bets shifting towards long positions.✅
Cryptocurrencies like Bitcoin and Ethereum are key indicators for stocks. When they reach their lows, they often recover.✅
Tom Lee, Fundstrat Research Director, 2023, X (Twitter)
🚨What is the impact of massive liquidation and declining demand for cryptocurrency ETFs and treasury bonds: what is the effect?💡👀👇
Profit-taking pressure and declining demand from exchange-traded funds and electronic treasury have led to liquidations of over a billion dollars in the past three weeks, raising concerns about losses for short-term traders.✅
Liquidation is seen as a sign of reduced risk, as investors choose to pull capital ahead of potential interest rate decisions and macroeconomic pressures that could negatively affect short-term investment returns.✅
🚨What does the options market say about Bitcoin price forecasts?💡👀👇
Options market data shows that the 25 delta skew for the week and month is above 10%, reflecting positive investor confidence. This indicates that Bitcoin's short and medium-term outlook remains relatively positive despite the recent correction.✅
Many options traders are increasing their bets on Bitcoin recovery to the $124,000 to $130,000 range, boosting expectations for extending positive sentiment to the entire market if this scenario materializes.✅
🚨How does the Federal Reserve's speech and Jerome Powell affect the market?💡👀👇
Investors are awaiting Jerome Powell's speech at Jackson Hole, as a hawkish stance on raising interest rates could keep markets under pressure, while signals of continued easing could support sentiment.✅
History shows that Powell's statements often trigger significant volatility, especially when market sentiment is fragile. Therefore, closely monitoring the Federal Reserve's stance is crucial in the short term for cryptocurrency investors.✅
"Jerome Powell's statements always serve as a test for risky asset markets."✅
Lyn Alden, macroeconomic expert, 2024, CNBC
🚨Conclusion: Are there chances of recovery or are the risks not over yet?👀💡👇
And although the market has just experienced a sharp decline, technical signals and expert forecasts show that the fear factor is somewhat exaggerated, opening the door for the possibility of recovery if the Federal Reserve sends positive signals regarding interest rate cuts in September.✅
Investors should consider the risks arising from external factors and always update information regarding macro events, especially political data released by the U.S. central bank, to develop a reasonable strategy.✅
Frequently Asked Questions about cryptocurrency markets this week
🚨What does a drop in the fear and greed index to 45 mean?👀💡👇
The level of 45 reflects a state of fear dominating the market, with investors avoiding risk ahead of major monetary policy decisions, especially before the Federal Reserve's conference.✅
🚨What is the reason for the sharp decline in purchasing power of cryptocurrency ETFs and treasury bonds?💡👀👇
The main reason is that investors want to reduce risks arising from macro events and the possibility of rising interest rates, leading to withdrawals from exchange-traded products and electronic treasury.✅
🚨Will the liquidation of over a billion dollars have a lasting effect on the market?👀💡👇
Large liquidations drive prices down sharply in the short term, but they often help the market form a technical bottom if there are no other bad news from macroeconomics.✅
🚨Is Jerome Powell's speech a decisive factor in the recovery trend?💡👀👇
This is a key factor, as Powell's views directly impact risks and recovery expectations in the cryptocurrency market.✅
🚨Have analysts concluded that Bitcoin has reached its short-term bottom?💡👀👇
Many experts, like Tom Lee, believe the bottom may have formed, but risks remain if the Federal Reserve changes its policy stance.✅
🚨What should investors do during periods of strong market volatility?👀💡👇
Closely monitor macroeconomic news, manage risks carefully, and avoid emotional trading to limit unnecessary losses.✅
🚨What do options market data say about Bitcoin price recovery forecasts?💡👀👇
The majority of options lean towards long positions, indicating that many investors believe in the possibility of a short to medium-term recovery in BTC price.✅
Thank you for reading this article!
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