Leading cryptocurrency Bitcoin and altcoins suffered sharp declines due to investors’ ongoing uncertainty in macroeconomic conditions.
While this decline left investors who were expecting a rise in the lurch, recovery began as investors returned to the market.
Investors are waiting for next week’s CPI, a key inflation indicator in the US, to make a full decision.
Presto Research analyst Min Jung, assessing the decline, said the decline was due to disappointing US non-farm payroll data.
Jung also said that declines in U.S. stock markets, coupled with weaker-than-expected data, may have contributed to profit-taking in Bitcoin and other cryptocurrencies, especially after several weeks of gains.
BTSE COO Jeff Mei said that retail and institutional investors were quick to “buy the dip” after last week’s decline in macro data from the US.
Speaking to The Block, Mei said the decline won’t be long-term.
“Whenever there is a dip, buyers rush to take advantage of the opportunity. That’s why the dip doesn’t last long…
It is clear that those who do this are long-term investors and institutions.
We anticipate Bitcoin’s monthly closes will continue to rise as crypto treasury firms acquire assets and TradFi institutions launch crypto services and partnerships.”
Finally, Kronos Research CIO Vincent Liu said that while there is uncertainty in the market, investors are currently cautiously optimistic.
“Investors are turning to risk with the support of whale buying and hopes of an eventual interest rate cut,” said the analyst, adding that investors are now focusing on the CPI.
*This is not investment advice.