In the crypto market report covering the week of September 2 – 9, 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: September 2, 2024.
September 2 Weekly Crypto Market Report Overview
The selling pressure seen in cryptocurrencies continued last week. While employment data from the US was seen as the most important headline of the week, the fact that the Non-Farm Employment data fell short of expectations on Friday also created pressure on crypto assets.
Due to the fragility shown by the stock market in the US, there is a selling pressure on almost all risky assets, while the Nasdaq experienced a pullback of 5.80% and the SPX 4.50% due to the decline seen in technology stocks. These declines also increased the pressure on the crypto asset market. While the total market value fell below $ 2 trillion with the decline experienced on Friday, we see that the $ 1.80 – $ 1.85 trillion range that we have been using for a long time is working as a support zone again in this process.
In this process, Bitcoin’s dominance, which could not remain very strong compared to altcoins, fell below 57%, and as of Monday, it was at 56.90%. In Ethereum, while a decline occurred to the previous bottom region of 2120, we can say that this region is one of the most critical levels in terms of Ethereum pricing. In altcoins, we see that the NFT sector is positively priced with the developments in APE, while many other sectors are horizontally-negatively priced. We can expect the US Inflation Data and the European Central Bank interest rate decision to be effective on pricing this week.
Ahead of the FOMC meeting to be held on Wednesday next week, we can expect the downward trend in inflation data to ease somewhat and the 50bp discount pricing to increase, thus having a positive impact on risky assets. One of the most important topics is how the European Central Bank will decide against the 25bp discount expectation. Unexpected statements in the decision to be announced on Thursday may cause an increase in volatility.
When looking at ETF performances, while small outflows continue in Ethereum ETFs, we see much larger outflows in Bitcoin ETFs. We see that the sell-off in risky assets, especially in the US stock market, is also reflected in ETFs and that Bitcoin ETFs have experienced an 8-day outflow series for this reason. Lastly, after the $168 million outflow seen on Friday, Bitcoin ETFs have made their longest outflow series since their launch in January, with a total outflow of nearly $1.5 billion.
In the weekly view, Bitcoin’s rise above the 56,500 region and Ethereum’s rise above $2400 will be positive signals that we will expect as we enter the second half of September. If the downward pressure continues, the 50,000 – 52,000 regions for Bitcoin and the 2100 – 2120 regions for Ethereum will be important support levels.
Those who want to get more comprehensive information about the week covering September 2 – 9 can review the Weekly Crypto Market Reports: September 26, 2024.
