As traders seek to understand the path of Federal Reserve monetary policy, the recovery in the crypto market is appearing shakier. James Bullard and Esther George, two Fed members, sent conflicting signals on Thursday regarding the scope of the interest-rate hike in September. Both emphasized the need to continue to raise borrowing prices, though.
The Fed’s annual symposium in Jackson Hole, Wyoming next week remains an important event to watch regarding the bitcoin price. There’s already speculation that Fed Chair Jerome Powell may lean against a recent loosening in financial conditions that’s driven the markets higher in recent weeks.
At its price of $20,982, Bitcoin is presently trading below the realized price, which is $21,700, which represents the average value of the BTC coin supply as of the most recent on-chain transaction. On-chain analytics firm, Glassnode, wrote:’’Bitcoin prices have broken back below the realized price after 23 consecutive days above the market cost basis.” The realized price currently sits at $21,700, reflecting the aggregate acquisition price, valued at the time coins last moved on-chain.
With BTC prices below the realized price, the short-term outlook remains mixed. The crypto fear and greed index has returned to “fear,’’ indicating apprehension in the market.
At the time of publication, ETH was trading at $1622, down 14% over the previous day, after topping $2,000 during the previous week. In recent weeks, there has been a lot of anticipation surrounding The Merge, which has driven up the price of the second-largest cryptocurrency by market value.
According to Twitter analyst Ali Martinez, Ethereum may have a 28% fall to $1300 if the rising wedge technical pattern is confirmed. Additionally, according to data from Intotheblock, 675,500 addresses purchased 8.91 million ETH between $1,700 and $1,750 in the past. As a result, Ethereum needs to hold above this demand range to have a chance of recovering and avert a drop to $1300.
Ethereum developers working on the much-anticipated Merge upgrade confirmed Sept. 15 as the likely official date of the proof of stake (POS) transition. Last week, Ethereum creator Vitalik Buterin said the upgrade might happen around Sept. 15, according to an estimated TTD.
According to derivatives data, most expect the Ethereummerge event to be a “sell the news” one. However, expectations ahead may drive ETH price in the short term.
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