The crypto market, anticipating a busy macroeconomic calendar has seen a slight dip. It failed to maintain key levels of resistance, resembling an old trend.
Data shows that the market capitalization of crypto assets has dropped by 2.9% to $1.2 trillion. This is due to major blue-chip assets such as bitcoin ( BTC) ether ( ETH), which fell below their respective thresholds of $30,000 and $2,000.
BTC and ETH have not changed much in the last 24 hour, each down by 0.3%, to approximately $29,200, and $1,850. Data shows that both assets dropped 3% and 2.5% respectively earlier in this week. This was their biggest loss in the past 10 days.
In its weekly newsletter, crypto prime broker FalconX said that the current market sentiment is similar to the mood of 2019. The industry is buzzing about potential developments and the wider markets are paying little attention.
The trading volumes of BTC, ETH and other cryptocurrencies are now also at lows that are similar to those seen in the past year.
Some smaller cap assets buck trend
Other cryptos show promise despite the general pullback. This could be linked to an increased interest after the recent SEC vs. Ripple ruling and Blackrock’s updated spot Bitcoin ETF.
Due to the successful implementation of the Cross-Chain Interoperability Protocol that enables token and message exchanges between multiple chain, Chainlink ( Link) enjoyed double-digit gains for the month.
Assets were up by 0.8% for the day, to $7.49. They are up 8.5% over the past week. The asset is still more than 85% below its high of $54.40 in May 2021.
Dogecoin (DOGE), a popular memecoin has also outperformed the market, as its market cap rose to a new high of $11 billion, a record for three months.
The crypto has gained 15% in the past week, largely due to speculation about potential payment integrations with Twitter (now rebranded as X). DOGE is up another 2% today, but it’s still more than 90% below its high-water mark of $0.76 in May 2021. It currently trades for $0.08.
Analysts say that despite some large gains in certain assets, there is a general calmness.
FalconX asked: ‘The question of the week is whether or not tomorrow’s macro calendar, which will get hotter than usual, will be able stir up crypto calmness.’
Market analysts now predict that the upcoming macroeconomic event could disrupt the complacency in the crypto market.
Federal Open Market Committee’s (FOMC) decision may lead to the widely anticipated 25 basis point increase – seen by many as a way of moving digital assets in a certain direction depending on whether the Fed is dovish or hawkish at the time.
Macro lens
The impact of the recent US Q2 GDP numbers and the anticipated interest rate increase by the European Central Bank are also macroeconomic factors.
Although the correlation between digital assets, and the wider market has decreased over the past few months, analysts believe that global developments and their impact should not be ignored.
FalconX reported that crypto volatility is continuing to decline, both in realized terms and implied terms . This could present a good opportunity for investors to protect themselves from possible market spikes related to macro-week.
Jason Pagoulatos told Blockworks that due to the over-exuberance of June/July bullish fundamentals it was not a given that capital would be unwound.
He said: ‘Given the way equities have been extended and the performance of BTC with some very positive news behind it, I think the path of least resistence is to continue to the downside.’
Analysts pointed out that a target price range between $28,000 and $27,000 would be a ‘attractive amount for buyers.