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Edited by Pooja77 at 21-12-2023 01:59 PM
According to data from The Block, as the recent volatility in the crypto market has decreased, overall trading volume has continued to decline. The current daily average spot trading volume (7-day moving average) stands at $11 billion, close to the lowest point of the year, which is roughly a quarter of the over $40 billion annual high reached in March.
Greg Cipolaro, Research Manager at Stone Ridge Asset Management, shared his perspective on the August market by drawing from historical trends. He pointed out, "August is a quiet month for traditional market investors, and cryptocurrencies are no exception." Cipolaro explained that historically, as summer progresses, the average returns tend to decrease, and this trend may continue into August.
On the other hand, financial expert Ric Edelman, founder of the Digital Assets Council of Financial Professionals, expressed concerns about the current crypto market. He believes that Gary Gensler, as the Chairman of the U.S. Securities and Exchange Commission (SEC), is unlikely to change his stance on cryptocurrencies. Additionally, the SEC is unlikely to approve Bitcoin ETF applications, and Congress is unlikely to enact any significant legislation. Despite these possibilities, signs of all these events remain strong, and everyone is in a wait-and-see mode, which may continue throughout the summer.
Furthermore, regarding the Federal Reserve's current stance on interest rates, Edelman stated that if necessary, the Fed would not hesitate to continue raising rates. This is because there is still uncertainty about whether there will be an economic recession or correction in the stock market, and investors are looking for ways to protect their diversified portfolios.
Nevertheless, Ric Edelman still views Bitcoin's performance in the first half of the year, with a 77% increase, as outstanding. He believes that investors can remain optimistic because several factors may favor Bitcoin in the next six months to a year, such as:
1. XRP's decision may set a precedent for the regulatory treatment of cryptocurrencies in the United States.
2. Congress is advancing legislation that can provide greater clarity and support for the crypto industry.
3. Approval of BTC ETF applications can increase demand and liquidity for Bitcoin.
4. Bitcoin's halving is scheduled for spring 2024, which may reduce the supply of Bitcoin and increase its scarcity.
In summary, combining the viewpoints of these two analysts, they both suggest that the volatility in Bitcoin and the overall cryptocurrency market may continue to decrease in the coming month of August, with not much excitement expected. However, there are several narratives in favor of Bitcoin's growth in the second half of 2023 and leading up to the halving in the next year. Therefore, current investors can maintain an optimistic but cautious outlook on the market. |
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Post time 11-9-2023 11:40:11