The cryptocurrency market needs a stronger catalyst than former U.S. president Donald Trump’s Bitcoin BTC
-4.53%
2024 speech to spark a major breakout, analysts said.
“Trump’s speech echoed industry expectations, but the market may require a more significant catalyst for a major breakout. This catalyst could materialize closer to the U.S. elections when promises and policies are more clearly defined,” QCP Capital analysts said.
The analysts added that because bitcoin failed to breach its all-time high despite Trump’s optimistic remarks at Saturday’s conference in Nashville, “it is plausible that bitcoin will continue trading in a range.”
Bitcoin could continue to trade within a tight range
Bitfinex analysts pointed to a recent reduction in options implied volatility in the bitcoin market and the increase in leveraged positions to also suggest that the digital asset would remain range-bound in the short term.
However, Bitfinex analysts cited the potential of monetary policy easing as a factor that could act as a key support for the bitcoin price and even build bullish momentum.
“Inflation pressures have eased, with prices rising moderately as lower goods costs offset increased service prices, reinforcing the likelihood of a Federal Reserve interest rate cut in September,” they added.
Crypto market follows equities higher
Alongside the gains made in the cryptocurrency market, equity indices began Monday in positive form. The S&P 500 traded up 0.20%, and the Nasdaq increased 0.67% in early trading. The global cryptocurrency market rose alongside equity markets, reaching a market cap of $2.55 trillion, a 0.6% increase over the past 24 hours.
In recent weeks, bitcoin, and by extension, the cryptocurrency market, has shown a tendency to correlate positively with equity markets, particularly the tech-heavy Nasdaq. “Bitcoin’s behavior is increasingly resembling that of a macro asset, suggesting a possible shift in its role within the broader financial landscape,” Keyrock Head of APAC Business Development Justin d’Anethan told The Block.
The largest digital asset by market cap’s price increased 1% in the past 24 hours and was changing hands for $68,060 at 11:12 a.m. ET, according to The Block’s Price Page.
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