It’s hard to get bored on the cryptocurrency market. However, you’re currently seeing some investor indecision. The last two weeks have been marked by growth. Except that now we’re seeing declines again. What could drive growth on the cryptocurrency market again?
Growth in the cryptocurrency market
What has been happening on the cryptocurrency market over the past two weeks was summed up by Ryan Lee, chief analyst at Bitget Research, in a note sent to our editorial office:
The cryptocurrency market has been on a roll over the past two weeks, with Bitcoin (BTC) leading the way, rising a significant 26% from $54,000 to its current level of $68,000. This rise has been accompanied by a rise in the Market Fear Index, which has jumped from 26 at the start of the month to its current level of 74.
However, 1 BTC is now worth less than $67,000 – at the time of writing, it is $66,850, which translates to a 1.5% increase since yesterday and a 3.7% increase over 7 days.
Regardless, you may see some more gains this week. There are at least two reasons for this. First, the expected launch of ETH ETFs, which are expected to take place early this week. Some believe that the launch of funds will be more significant for ETH than the previously launched ETFs for Bitcoin.
In addition, politics has crept back into the market:
(…) Republican presidential candidate Donald Trump’s presence and keynote speech at the Bitcoin 2024 conference fueled speculation that BTC could become the US’s “reserve asset.” While the likelihood of this happening is low, the mere possibility has prompted significant speculative buying in the market
– Lee added in the note.
What will the Fed do?
What else could drive growth? Expectations of a Fed rate cut. This hope could boost cryptocurrency valuations until September. However, the key decision will be made on September 18. According to the Fed Watch Tool, the probability of a 25 bp cut is as high as 91.7%. The risk of leaving rates at the current level is 5.8%.
