Bitcoin and major altcoin have begun their recovery after a sharp decline caused by macroeconomic data last week, with investors rejoining the market with cautious optimism.
Bitcoin is approaching $115,000: Investors are “cautiously optimistic” and buy at dip
Bitcoin has risen 1.22% to $114,738 over the past 24 hours. The world’s largest crypto assets fell from $119,000 on July 31 to $111,800 on Saturday.
A similar price movement was observed in Altcoins, with Ethereum rising 3.12% to $3,549, XRP rising 6.32% to $3, and Solana rising 1.66% to $163.69.
Presto Research analyst Min Jung thought it had waned into the “risk-off” trend that emerged after US non-farm pay data reached expectations in July. Data showed that only 73,000 jobs were created in the US in July. This is far below expectations. Jung said that after weeks of bullish activity, stock markets have been driven by a decline in the crypto market and a decline in the US stock market.
BTSE COO Jeff Mei said the decline was short-lived and long-term investors and institutional buyers seized the opportunity immediately.
According to Kronos Research Cio Vincent Liu, the market is “cautiously optimistic.” Liu emphasized the fear of “greed” and the shift in greed index, strengthening market sentiment.
Liu said investors will be focusing on the July US Consumer Price Index (CPI), which will be released on August 12th. This data is expected to have a significant impact on the Fed’s next interest rate decision.
The Federal Reserve will stabilize interest rates at its FOMC meeting on July 29th-30th, with Chairman Jerome Powell saying interest rate cuts are not certain in September. Data from the CME Group’s FedWatch tool shows an 80.8% chance of a 25 basis point rate reduction at the September 17 meeting.
Liu also predicts that the recently announced Project Crypto initiative by the US Securities and Exchange Commission (SEC) will have a positive impact on the market in the long term.
*This is not investment advice.