bitcoin

Market Volatility Expected as Key Events Approach

The Big Whale

— 1 min read
  • Analysts predict increased market volatility due to upcoming macroeconomic events.
  • Crypto market downturn after strong U.S. jobs data impacts meme stocks and alternative tokens.
  • Bitcoin and ether stable over the weekend with low trading volumes post-leverage flush.
  • Market volatility expected to return with CPI release, FOMC meeting, and Yellen's speech.
  • Record leverage on bitcoin futures led to market plunge following strong NFP figures.
  • Open interest and trading volumes decrease, meme coins like DOGE and SHIB lose value.

Summary :
Analysts are predicting increased market volatility in the coming week due to key macroeconomic events, including the release of the Consumer Price Index (CPI) and a speech by Janet Yellen. The crypto market experienced a downturn following the release of stronger-than-expected US jobs data, with meme stocks like GameStop also seeing declines. This had an impact on riskier assets such as alternative tokens and meme coins. Bitcoin (BTC) and ether (ETH) remained relatively unchanged over the weekend, as open interest and trading volumes decreased after a $400 million leverage flush out on Friday. However, Presto Research analysts expect market volatility to return in the upcoming week, driven by macroeconomic catalysts. The market plunge on Friday was attributed to the release of non-farm payrolls (NFP) figures, which showed the US economy adding 275,000 jobs compared to the expected 185,000. BTC experienced a sharp decline, falling from $71,000 to $69,000. Additionally, the slide in GameStop's stock appeared to weigh on riskier assets, causing major meme coins like dogecoin (DOGE) and shiba inu (SHIB) to lose as much as 10%. Open interest and trading volumes across various tokens decreased significantly since Friday, indicating a reduction in traders' bets. BTC traded at around $69,400, while ETH traded around $3,660. Other tokens like Solana (SOL), xrp (XRP), and BNB Chain's BNB also experienced slight losses. However, Cardano's (ADA) token saw a slight increase following confirmation of a technical event that could impact the network's fundamentals.

Sources :

- Coindesk

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