Bitcoin and Ethereum are trading at somewhat lower values, although these are little movements that are linked to conventional financial markets.
BTC’s price today briefly dipped below $25,600, but only today. It’s important that it was lower than $25,700. In fact, it hadn’t meaningfully dropped below that line since September 7.
That support appears to have held consistently throughout the past few days, with the exception of a few exceptional instances. Today, though, it was invalid.
It had also dropped below $25,600 on September 7 but had stopped short of $25,500. Today, it appears to be proceeding in a similar manner.
In comparison, on September 1 it had dropped as low as $25,300, thus the current modest decline appears to be quite consistent with what occurred in September.
However, compared to a low of $25,300 and a high of only $26,400 this month thus far has witnessed very little volatility, and eleven days in a row inside such a condensed range are extremely uncommon.
After a slightly more dramatic August, the days of July seem to be returning, with minimal volatility for an asset that is typically fairly volatile.
The cost of ETH
The cost of ETH is a little bit different.
It actually dropped as low as $1,580 today, albeit briefly, and is remains significantly below $1,600.
To locate such low levels, one must look back to the abrupt decline on August 18, when it lost nearly 14% of its value in just three days.
In actuality, it had previously sustained a level above $1,600 until 13 March, and the current value is comparable to the level on 12 January.
It suffices to note that BTC is still up 54% since the start of the year, whilst ETH’s gain has decreased to 32%. It is also performing worse than XRP and TRX (Tron) in this regard, but it is typical for Ethereum to outperform Bitcoin during crypto winters.
Price lateralization of Bitcoin and Ethereum before today
In reality, it is maintaining the lateralization that had started in mid-March.
Prices had climbed once more in January and February before dropping in early March. They rose once more in the second half of March, but only to start a protracted lateralization that is still going on.
For instance, the price of Bitcoin surpassed $25,000 on March 17 and has largely maintained this level ever since, with the exception of a brief period in the middle of June.
Additionally, it has never gone beyond $31,800, the present key barrier, which if broken would signal the end of the protracted phase of lateralization.
What the markets anticipate
Additionally, the markets are currently anticipating with fervor the release of the August US inflation figures on Wednesday.
For instance, on this day, Bitcoin’s price dropped just before Asian marketplaces opened because of concern for a further decrease.
However, the slide on Asian exchanges, and Hong Kong’s in particular, came to an end, and Bitcoin had somewhat recovered as the Dollar Index was marginally lower.
The Dollar Index’s trend then changed, with DXY rising once again beyond 104.7 points, while the price of Bitcoin dropped once more.
It’s important to note that the markets are placing bets on the Fed stopping its rate hike, and they think the number reported on Wednesday may be good news.
In actuality, the forecast calls for an increase in overall inflation (from 3.2% to 3.6%), but a net decrease in core inflation (from 4.7% to 4.3%). Since the Fed is primarily concerned with the latter, it is believed that rates won’t be increased again at least in September.
While market predictions of inflation data have recently frequently been pretty accurate, it is uncertain whether the actual data presented on Wednesday will match predictions. Markets may respond quickly and even abruptly if they are considerably different.
Since the Fed’s monetary policy is still the key element at this time that can have a significant impact on markets, it is more than reasonable to expect them to stay static, or almost so, during periods of such expectation.
