Traders buy the dip in cryptocurrencies amid panic from retail investors and a potential bearish trap for Bitcoin
The pricing of uncertainties with Jackson Hole raises the fear index and triggers liquidations of leveraged traders.
On the morning of this Wednesday (20), the cryptocurrency market operated with a market capitalization of $3.84 trillion (-1.6%), while Bitcoin
BTC
€97,462
retreated to $113,700 (-1.6%) with a weekly accumulated decline of 5.5%. Investor sentiment approached fear (45%) and the major altcoins by market capitalization were in the red, despite several rises.
The net outflow volume from the cryptocurrency market, nearly $70 billion in 24 hours, occurred following the decline of technology stocks, which pressured the S&P 500 and Nasdaq in the previous day's session. In this case, the indices historically associated with Bitcoin's performance closed at their respective 6,411.37 (-0.59%) and 21,314.95 points (-1.46%).
On the other hand, corrective movements were also seen as a potential pricing of market uncertainties with the annual Jackson Hole conference, which takes place between Thursday (21) and Saturday (23). During the annual meeting in Wyoming (USA), representatives from central banks meet to discuss the direction of the global macroeconomy.
In particular, investors in markets such as cryptocurrency await the speech from Federal Reserve (Fed) Chairman Jerome Powell, looking for signals from the President of the Central Bank of the United States regarding a potential interest rate cut in September. This measure, while it may represent a short-term rebound for Bitcoin, is not a unanimous measure among experts. This is because some see the measure as fuel for inflation and the consequent capital flight from the cryptocurrency market, which would trigger a BTC correction.
