- Bitcoin remained stable over the weekend, trading between $54,000 and $55,000, following a significant liquidation of crypto long positions after a U.S. jobs report indicated a weaker labor market.
- Upcoming events this week include a Presidential debate and the release of U.S. economic indicators like the CPI and PPI, with market analysts from Presto Research suggesting Bitcoin is undervalued due to its record-high network security despite prevailing macroeconomic concerns.
Over the past weekend, Bitcoin’s price fluctuated narrowly between approximately $54,000 and $55,000. This period was characterized by reduced trading activities on cryptocurrency exchanges. On Friday, around $220 million worth of long positions, which are bets predicting price increases, were liquidated swiftly due to a sudden market decline following the release of a jobs report. Consequently, there was less trading activity observed.
Nevertheless, Bitcoin seems appealing to traders at Presto Research due to its current pricing, as they stated in a recent note that they view it as significantly underestimated, or “grossly undervalued.
Despite the significant influence of broader market factors on Bitcoin’s price discussions, analysts at Presto are pointing out a crucial aspect supporting its worth that seems to be overlooked – the robustness of its network security. Notably, the computational power safeguarding the network, known as the hashrate, has reached an unprecedented high of 679 EH/s, making Bitcoin’s network the most secure by a substantial margin.
If you think that trend is likely to persist – and with the introduction of spot ETFs, our situation looks more advantageous than ever – it appears that Bitcoin is currently significantly underpriced.
Bitcoin miners have resumed increasing their operational capabilities starting from August, similar to earlier reports. This expansion coincides with record-breaking hashrates, a trend historically associated with low points in Bitcoin’s price.
Meanwhile, other traders suggested that the smaller-than-anticipated U.S. job growth numbers pointed towards a more fragile job market. However, the decreased unemployment rate has helped alleviate fears about an immediate economic downturn.
At present, it appears that the disappointing payroll figures are shaping the overall market mood, causing a drop in various assets since last Friday’s release, according to Lucy Hu, a senior analyst at Metalpha. She also predicts that the cryptocurrency market will continue to exhibit high volatility in the run-up to the next Federal Reserve meeting.
As a crypto investor, I’m keeping a close eye on the upcoming economic data releases this week. Specifically, I’m focusing on the Consumer Price Index (CPI) numbers due out on Tuesday, and the Producer Price Index (PPI) figures set for Wednesday. These figures could potentially impact the market movement of Bitcoin and other cryptocurrencies.
On Tuesday, crypto-friendly Republican candidate Donald Trump will debate Democrat Kamala Harris, with voters eager for clear policy positions. Previously, Trump has expressed intentions to establish the U.S. as the global leader in cryptocurrency, while Harris’s team is also reportedly examining strategies to foster industry growth.
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2024-09-09 07:58