Holding at $20,000 on the day, BTC is trading in the lower spectrum of its 76-day range. Analysts are weary of actions by the Fed.
Struggling at $20,000 from repeat dips throughout last week have garnered the opinion of some analysts that forecast a steeper downside in the near future. Philip Swift posted a tweet that the Crypto Fear and Greed Index headed back down to “Extreme Fear,” indicating weakened sentiment from investors.
Analytics data from Delphi Digital noted that Bitcoin open interest is hitting a new record high.
“The Futures Open Interest Leverage Ratio for BTC reached its highest level ever recorded at more than 3% of BTC market cap, following the market-wide collapse on August 26th.”\
“higher values suggest that open interest is large, relative to market size. This implies a higher risk of market squeezes, liquidation cascades or delivering events.”
The exact cause of these events is unknown, but it is held to be more certain that consistent downtrends in stocks may continue to hold down the Bitcoin price. CNBC data indicates the Dow closing the month with losses of 4.1% while the S&P 500 and Nasdaq closed at 4.2% and 4.6% respectively.
Loretta Mester, president of the Cleveland Federal Reserve made a comment in which she highlighted that her expectations for the benchmark interest rate will increase over 4%. She also said that the likelihood of any cuts through the year of 2023 is low.
The Merge is one of the main vessels for bullish support from traders. Ethereum’s movements have been well received by the community, both in ETH staking opportunities as well as smart contract security standards.