Crypto Market Conditions Remain Bearish, Coins Struggle with Recovery

The current state of the crypto market remains bearish as the market capitalization remains below $1 trillion. At the time of writing, the global crypto market cap is $985 billion, accounting for a 0.7% drop in the last 24 hours. Market analysts associate the downturn with several macroeconomic factors. Among these include the most recent consumer price index (CPI) data at 8.3%, released on September 13, which was higher than what was forecasted.

Following the data release over the past week, Bitcoin’s (BTC) price immediately dropped by around $1,000. This, in turn, resulted in huge losses for plenty of long traders on various exchanges. Data from crypto information platform Coinglass further noted that total liquidations reached $431.51 million among 130,087 traders over the past 24 hours. It also highlighted that Bitcoin (BTC) leverage traders lost $44.5 million, while Ether (ETH) traders followed with a total liquidation of $8.39 million.

Aside from the CPI data, market experts predict that another Federal Reserve rate hike — which could possibly be the biggest jump in 40 years — will come in an effort to control the high inflation. The Fed rate hike is also due to the crypto market’s failure to show signs of recovery. This proves to have a significant effect on the prices of various cryptocurrencies.

Several traders have also blamed the bullish market conditions on the recent Ethereum Merge, which marked its full transition to a proof-of-stake (PoS) scheme. Many regarded the announcement as a “buy the rumor, sell the news” event. In the days prior to the Merge, the price of ETH climbed to $2,000. At the time of writing, however, it has fallen to $1,380.

On his Twitter account, prominent trader @CanteringClark noted a parallel between current market conditions and those of the 1970s. With this, he elaborated that the crypto market could enter a bullish rally towards the end of the year, particularly in November and December.

Source: CoinTelegraph