The end of the week is a summary of the last few days with Sebastian Seliga from zondacrypto. So I give the floor to the expert of this leading cryptocurrency trading platform.
Bitcoin falls below $57,000
In the first week of September, bitcoin recorded a significant drop below $57,000, which was primarily influenced by concerns related to the US economy. Labor market data turned out to be worse than expected – the number of new jobs was 7.67 million, which is the lowest result in 3.5 years (against the forecast of 8.09 million). This sparked speculation about potential interest rate cuts by the Federal Reserve.
Despite the pressure, large investors continue to increase their BTC positions, now controlling 20.3% of the total supply. Bitcoin transaction volume has fallen by 30% over the past six months, and the number of active addresses has reached a three-year low. Analysts predict that, depending on whale accumulation and market conditions, BTC could retest the $49,500 level or rise into the $85,000-$120,000 range.
Bitcoin Capitalization and Altcoin Market
Bitcoin’s market cap fell to around $1.1 trillion, but it maintained a 54% market dominance. Among altcoins, ether had another week of declines, losing 44% against bitcoin since switching to Proof of Stake. ETH fell to $2,394, with the Ethereum Foundation selling 100 ETH deepening market concerns about future sell-offs.
Solana, on the other hand, is up 31% year-over-year despite a bear market, despite a major investor selling $99 million worth of SOL. That shows Solana’s resilience, but also suggests further selling pressure.
Capital outflows from ETFs
US Bitcoin ETFs saw net outflows of $37.29 million, with Grayscale and Fidelity ETFs posting the biggest losses. ETH ETFs followed suit, posting a second straight day of outflows of $37.51 million.
At the same time, Monochrome Asset Management has filed to launch an Ethereum (IETH) ETF on the Australian market, which would aim to provide retail investors with regulated access to the digital asset.
Other key events
- Mercuryo has launched virtual debit cards in Europe, enabling cryptocurrency users to use over 100 million merchant locations through integration with Apple Pay and Google Pay,
- Polygon moves to a new token, POL, marking a major step in the development of the Polygon 2.0 network, supported by the annual issuance of 2% tokens for validator rewards and the development of the Community Treasury,
- Nvidia lost $280 billion in market value, prompting a sell-off in AI-related tokens that fell an average of 7.1% (more than Bitcoin’s 4.3% or Ether’s 4.4%).
Summary
The week brought declines in the prices of bitcoin and ether, as well as significant capital outflows from cryptocurrency ETFs. Large investors continue to accumulate BTC, but the macroeconomic situation in the US raises concerns about future decisions by the Federal Reserve. Ether remains weaker than bitcoin, and altcoins such as solana show temporary resistance to declines, although further sell-offs are possible.
Longer term, cryptocurrency markets are seeing significant volatility, which points to possible further moves in the coming weeks, both in the direction of growth and further declines. Much depends on the future decisions of the Fed and the behavior of institutional investors.
