Summary:
- Market Drop: Bitcoin and cryptocurrency prices fell sharply on Friday after the August jobs report came in below expectations. Bitcoin hit a low of $53,334, while Ethereum dropped by 6%, erasing its yearly gains.
- Recovery Hopes: Despite the dip, Treasury Secretary Janet Yellen’s remarks about the economy’s recovery have led to a brief rebound in Bitcoin prices, which rose back above $54,000.
- Market Sentiment: Crypto experts like Arthur Hayes and TechDev predict that current market movements are part of a bear trap, with a major bull run expected in 2025.
- BlackRock’s Move: BlackRock recently acquired 336,058 Ethereum (ETH), amounting to $763.95 million, signaling institutional interest in crypto assets.
- Altcoin Movements: Dogecoin led gains with a 2.6% rise, while Quant saw a 23% increase, marking a two-day rally.
Cryptocurrency prices experienced a significant drop on Friday following the release of the August U.S. jobs report, which came in below expectations. Bitcoin, which briefly surged near $57,000, plummeted to $53,334, marking its lowest point since early August. Ethereum (ETH) saw a 6% decline, erasing its gains for the year.
The market’s brief rally came after U.S. Treasury Secretary Janet Yellen addressed concerns about the weak jobs report, noting that the U.S. economy remains healthy and is in a recovery phase. Speaking at the Texas Tribune Festival, Yellen assured that the jobs data pointed to a “soft landing” rather than a recession. Her comments provided some relief, and Bitcoin managed to bounce back above $54,000 with a slight 0.6% gain.
Despite the recent uptick, the crypto market remains under pressure. Arthur Hayes, co-founder of BitMEX, suggested that Yellen may resort to money printing to stimulate the economy. Additionally, TechDev, a popular crypto analyst, believes that Bitcoin and other digital assets are currently in the middle of a bear trap before the next major price surge. He suggests that a significant bull run could occur in 2025, offering one of the last opportunities to purchase Bitcoin at a low price.
The sentiment in the crypto market remains bearish, as indicated by the Bitcoin Spent Output Profit Ratio (SOPR) and the Chaikin Money Flow (CMF) indicator. Both metrics suggest that investors are selling at a loss, signaling market distress. However, some analysts believe that Bitcoin might have found support around $53,469, which could lead to a potential rally.
Meanwhile, institutional interest in cryptocurrencies continues to grow. According to Arkham Intelligence, BlackRock, the world’s largest hedge fund, recently purchased 336,058 Ethereum (ETH), valued at $763.95 million, marking a significant move in the market.
Altcoins have also seen mixed performance, with Dogecoin (DOGE) leading the top ten largest cryptos by market cap with a 2.6% gain. Quant (QNT) experienced a two-day rally, reaching a high of $70, though it remains 54% below its yearly peak.
Looking ahead, TechDev’s analysis suggests that Bitcoin could reach as high as $760,000 by 2028-2029, following the current bear market cycle. He compared Bitcoin’s price action to Japan’s Nikkei 225 stock market index, forecasting a similar pattern of accumulation followed by a bull trap.
For investors, the upcoming months could present a unique buying opportunity before a major bull run expected in 2025, which could also see a shift in dominance toward Ethereum (ETH).
Disclaimer:
The information provided on 13Desk is for informational purposes only and should not be considered financial advice. We strongly recommend conducting your own research and consulting with a qualified financial advisor before making any investment decisions. Investing in cryptocurrencies carries risks, and you should only invest what you can afford to lose. 13Desk is not responsible for any financial losses incurred from your investment activities.
