- Cryptocurrencies were mostly unchanged as the recent rally in market bellwethers Bitcoin and Ether has cooled, with many investors looking to the pullback as a natural symptom of taking some money off the table, especially given a long period of decline.
- Fortunately, many of the tourists in the cryptocurrency markets appear to have left, and volumes hint at institutional flows.
After testing the psychologically-significant level of US$25,000 over the weekend for the first time since the broader market corrected in June, Bitcoin is now trading at just a hair over US$24,000 (at the time of writing).
Ether, the second largest cryptocurrency by market value, which led gains amid optimism over a major software update know as the Merge, was down almost 2% to US$1,875.
The Merge is tentatively scheduled for mid-September, making the switch from proof-of-work to proof-of-stake imminent, and burnishing Ether’s ESG credentials.
Ether rejected the US$2,000 resistance on August 14, and the solid 82.8% gain since the rising wedge formation started on July 13 seems like a victory for bulls, despite a retracement below US$1,900.
Cryptocurrencies were mostly unchanged as the recent rally in market bellwethers Bitcoin and Ether has cooled, with many investors looking to the pullback as a natural symptom of taking some money off the table, especially given a long period of decline.
Risk assets have risen of late, on growing expectations that the U.S. Federal Reserve is likely to be more restrained in its rate hikes, especially given signs that inflation in the U.S. may have peaked.
But what macro provides, macro takes away as well and the risks of a Fed-induced hard landing by way of a recession could take the wind out of crypto’s sails.
Fortunately, many of the tourists in the cryptocurrency markets appear to have left, and volumes hint at institutional flows.
Analysis of blockchain data appears to also suggest that more investors are holding and appear to be prepared to hold Bitcoin for the long-term.
