Generally, there’s been no notable change in the market this week due to Bitcoin and Ethereum holding support at $21,000 and $1,600, respectively. Some good news is that the global cryptocurrency market is still valued at over $1 trillion, and the trading volume is stable. This shows that the market sentiment is still positive, despite dull actions from the market.
Key Ideas
- The cryptocurrency market and trading volume remain dull.
- Mt. Gox Creditors are due to receive their payment, which could significantly accelerate the downward trend for BTC.
- Bitcoin could go below $20k in the coming week as the market mood is neutral to pessimistic.
- The fear/greed index is at a monthly high, indicating that another correction may be imminent.
- Global and crypto markets are uncertain due to the underperformance of the stock markets and the prospect of future Fed monetary action.
Mt. Gox Creditors And Bitcoin Market Reaction
In a recent report from The Wall Street Journal, Mt. Gox creditors are about to receive part of their long overdue bitcoins, which might cause market panic. Many people see a possible Bitcoin price crash caused by people selling their coins on the exchange.
Notably, The creditors received some of their money back in just eight years, and since then, the price of bitcoin has climbed by more than 3,500%. After the creditors receive their Bitcoins, there are expectations of a significant increase in selling pressure, which will push markets further to the downside and may result in a drop in the price of Bitcoin below the $20k region.
It’s only natural that the creditors would sell off their assets once payment is confirmed. Variably, this same event can kick off another bull run if the creditors decide to hodl their assets after payment.
Crypto Market Positions for a 20% Drop
A recent report from Cointelegraph claims that Bitcoin and other digital assets might experience a 20% collapse to new yearly lows.
The global cryptocurrency market cap falling below the $1 trillion threshold would be catastrophic, signaling a change in trend from the bearish/neutral mood that currently characterizes the market. However, since the market is still worth more than $1 trillion, BTC and ETH can maintain their present support levels.
In other news, alternative.me’s crypto fear and greed index is at 25, indicating an increase in market fear. Since July 18th, the fear level hasn’t been this high, which raises the possibility that the market is getting ready for another decline this weekend.
Conclusion
Lastly, investors are waiting for the next step due to the underwhelming performance of the stock market and the likelihood of future interest rate increases.
Past Increase in Interest rate has always resulted in a volatile market, whereby many crypto assets lost over 15% at a glance. So, future announcements will generally be vital on what will occur in the crypto markets.
All indications point to either a sideways market or another correction occurring next week. For those looking to open long positions and lower their dollar-cost average on crypto assets, the impending correction could drive BTC prices below $20k and Ethereum prices below $1,400. This would represent an excellent buying opportunity.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any project.
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Source: https://nulltx.com/cryptocurrency-markets-show-no-action-as-bitcoin-and-ethereum-maintain-support-zones/