Bitcoin & Cryptocurrency Market on the Verge of a Comeback, Predicts Matrixport
The recent analysis conducted by Matrixport suggests that the period of relatively stagnant Bitcoin (BTC) prices and subdued volatility within the cryptocurrency markets is anticipated to come to an end. This shift is expected to catalyze a resurgence not only for BTC but also for alternative cryptocurrencies, leading to an upward trend in the overall cryptocurrency market.
According to Matrixport, several factors are projected to contribute to this potential surge. The report identifies the diminishing role of Korean traders in the crypto markets as a key driving factor. It is predicted that the decline in trading volumes from Korea, which have consistently fallen below $1 billion for three consecutive days, could result in a reduction in the funding rate.
The upcoming Korean Blockchain Week scheduled for the first week of September is also highlighted in the report as a potential catalyst for rejuvenating trading activity and reversing the market downturn. In addition, on-chain metrics indicate that investors are preparing to capitalize on market dips, as evidenced by a substantial increase in stablecoin deposits on August 5 when the price of BTC plummeted to $48,914. This suggests that investors are primed to acquire BTC and other alternative cryptocurrencies in the event of further market declines.
As of August 19, the current price of Bitcoin stands at $58,355, reflecting a 1.62% decline. Despite this, there are indications of a potential relief bounce in the cryptocurrency markets, as BTC continues to trade above the previous week’s Value Area Low (pwVAL) of $57,958. Furthermore, the supply of Tether (USDT) on exchanges has experienced a 6.63% increase, rising from 15.68 billion to 16.72 billion over the past week, further bolstering the notion that investors are ready to seize opportunities presented by market downturns.
Looking forward, Matrixport predicts a potential 2% increase in Bitcoin price, with the formation of a local peak around $59,600 in the upcoming days. In an optimistic scenario, BTC may even retest the psychological level of $60,000, signaling a potential upward trend.
In a surprising turn of events, Mike Novogratz, the CEO of Galaxy Digital, has adopted a bullish stance, with the company recently acquiring 400 BTC. Additionally, Tether is poised to launch USDT on Aptos, resulting in a 3% surge in APT price. Meanwhile, outflows from Solana have reached an all-time high at $39M, placing the SOL ETF in a precarious position.
In summary, while the recent period has witnessed relatively subdued movement in the cryptocurrency markets, there are indications of a potential resurgence in the near future. This is attributed to the involvement of Korean traders and signs of increased purchasing activity from investors. Consequently, the forecast from Matrixport presents a positive outlook for Bitcoin and the wider cryptocurrency market in the near term. With forthcoming events and developments, the cryptocurrency space is poised to observe significant movement and potentially enter a new phase of expansion and activity.
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