In the crypto market report covering the week of August 12 – 19 prepared by the ICRYPEX Research team, we compiled current developments regarding crypto assets, price movements of crypto assets and macroeconomics.
You can take a look at the general flow of this report below, and access all the developments that took place in the 7-day period in the Weekly Crypto Market Reports: August 12, 2024.
Weekly Crypto Market Report Overview August 12
With the rise in Bitcoin from $ 49,000, the price came back to the $ 60,000 region, but it could not stay strong in this region. We see that Bitcoin returned to the $ 56,000 and Ethereum to the $ 2500 support.
During this period, the total market value closed the week at 2.03T levels with an increase of 0.64%, while Bitcoin closed the week at $ 587,400 with a loss of 0.50%. During this period, Bitcoin dominance saw 57.80% and then dropped below 57% again. The fact that Bitcoin dominance completed the week below 57% can be evaluated positively for altcoins.
Last week, when the recession panic calmed down even more, the focus of the markets was on the PPI – CPI data to come from the US. Following the weak images seen in the PPI data on a monthly basis, the CPI data was also announced in line with market expectations. Headline inflation was announced as 2.9% on an annual basis, below 3% for the first time since April 2021. However, while some pressure was seen on the markets with the announcement of the inflation data, the main reason for this was considered to be the 50 bp interest rate cut expected by the markets in September not reflecting the incoming inflation data. This pressure continued throughout Wednesday and caused Bitcoin, in particular, to rise to the very critical 61,700 region, but failed to break through and return to the 57,000 region.
While significant increases were recorded in risky assets and precious metals after Wednesday, these increases were not reflected in cryptocurrencies. While gold renewed its ATH level, US indices also turned positive, erasing all the losses they experienced throughout August. Although positive data was encountered in cryptocurrencies from an economic perspective, the development that will determine the course of the year seems to be the elections in November.
Kamala Harris’s rise to the top in many polls last week continues to put pressure on cryptocurrencies. Other than these, the fact that volumes have fallen even further and the Death Cross seen in Bitcoin in the technical view, namely the intersection of the 50-200 Day Moving Averages, have been some of the situations that have increased the pressure on crypto assets. Despite this news and movements, Bitcoin tested the $60,000 levels, but failed to rise above the region.
When we look at ETFs, we see that Bitcoin ETFs experienced a weak inflow of $30 million in their weekly performance, while Ethereum ETFs closed the week with an outflow of close to $10 million, with outflows following consecutive inflows until Wednesday.
In the developments we expect this week, the US PMI data and important data from Europe and Asia will guide the market. Apart from these, we will expect to hear statements (especially Powell) about the interest rate cuts that the markets are currently pricing in undecidedly and that we will not be able to get an answer for anywhere else until September, in the speeches to be made at the Jackson Hole Symposium that will start on Thursday. While the markets are currently expecting an interest rate cut of less than 4, i.e. less than 100 basis points, by the end of the year, we expect this data to fall from 3.82 to 3.
Those who want to get more detailed information about the week covering August 12 – 19 can visit Weekly Crypto Market Reports: They can review August 12, 2024.
