A considerable number of cryptocurrency investors, who are aware of an imminent significant event, have been selling their assets for quite some time. While the direction of the market remains uncertain, it is a common occurrence for prices that have been stagnant for a prolonged period to eventually break out. This raises the question of why an on-chain analyst has issued a warning about a potential time bomb in the crypto industry.
BTC is currently valued at $57,100, while altcoins are exhibiting a relatively calm behavior compared to the previous week.
The on-chain analyst in question is Axel Adler Jr, a popular figure known for publishing his evaluations on CryptoQuant. His focus lies in analyzing unrealized profit and loss. Based on his observations, Adler Jr has issued a warning, referring to a time bomb in the crypto industry. In his latest assessment, he emphasized the significance of “STH whales,” a term used to describe large short-term investors who make substantial purchases. This category also includes reserves held by ETF issuers. Investors who are well-versed in traditional markets control a total reserve of $50 billion in the ETF channel.
Mignolet, an expert at CryptoQuant, also highlighted the fundamental cost of $64,000. He emphasized the urgency for the markets to reverse their current trend before the time bomb at the entrance explodes.
Apart from the time bomb warning, the crypto industry has a busy agenda this week. Key data, namely the PPI and CPI data, will be released. Additionally, there will be a keen interest in the statements made by Fed Chairman Powell over the course of two consecutive days. The continuous decline in inflation is of utmost importance and could serve as a significant motivating factor for investors in risk markets.
According to the FedWatch, the market interest rate forecast for July remains stable. However, the recent downward revision of the Non-Farm Payroll data indicates that the Fed desires a relaxation in employment. This leads to a scenario where two total 50bp cuts are expected to be implemented before the end of the year.
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Disclaimer: The information provided in this article should not be considered investment advice. It is essential for investors to be aware of the high volatility and associated risks of cryptocurrencies. Conducting thorough research is crucial before making any investment decisions.
