As the weekend wrapped up, Bitcoin (BTC) demonstrated remarkable stability, trading within a tight range of $54,000 to $55,000. This calm before the storm comes as the cryptocurrency market braces for a week of significant events, including a pivotal U.S. presidential debate and the release of crucial economic figures.
Over the weekend, trading volumes on major exchanges dwindled, reflecting a market in wait-and-see mode. Friday saw a sharp market drop after a jobs report led to the liquidation of over $220 million in crypto longs, or bets on rising prices. This sell-off resulted in subdued activity across major tokens, with Bitcoin’s rivals like Ethereum (ETH), Solana (SOL), Cardano (ADA), Ripple’s XRP, and Tron (TRX) showing only marginal gains of around 0.5% in the past 24 hours.
In contrast, mid-cap tokens experienced notable surges. Memecoin NEIRO on Ethereum (ETH) and BitTorrent (BTT) jumped 25%, catching the eye of investors looking for opportunities beyond the top cryptocurrencies.
Despite the market’s quiet performance, Bitcoin remains in the spotlight. According to a Monday note from Presto Research, Bitcoin is currently “grossly undervalued.” Analysts Peter Chung and Min Jung highlighted the asset’s strong network fundamentals, noting an all-time high hashrate of 679 EH/s. This unprecedented level of computational power securing the Bitcoin network positions it as the most secure blockchain in existence.
Chung and Jung argue that Bitcoin’s undervaluation is even more pronounced given the favorable setup provided by the availability of spot ETFs. They also pointed out that Bitcoin miners have been ramping up their operations since August, a trend historically associated with price bottoms.
The broader market sentiment has been swayed by recent U.S. economic data. Lower-than-expected payroll figures have raised concerns about a weakening labor market, while a reduced unemployment rate has alleviated fears of an imminent recession. “The lower-than-expected payroll data is dominating market sentiment at the moment,” said Lucy Hu, senior analyst at Metalpha. “We anticipate continued volatility in the crypto market leading up to the next Fed meeting.”
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Adding to the week’s anticipated volatility, August’s Consumer Price Index (CPI) figures will be released on Tuesday, followed by Producer Price Index (PPI) data on Wednesday. Additionally, the highly anticipated presidential debate between crypto-enthusiast Republican candidate Donald Trump and Democrat Kamala Harris will take place on Tuesday. Trump’s vision of making the U.S. the “crypto capital” of the world contrasts with Harris’s potentially industry-growing policies, creating a dynamic backdrop for the market.
As Bitcoin trades quietly, eyes are set on these pivotal events that could spark significant movement in the cryptocurrency market. With Bitcoin’s fundamental strength and macroeconomic factors at play, the coming week promises to be a critical period for crypto traders and investors alike.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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