Reserve

Shift

<p style="text-align: justify">You can also read this news on BH NEWS: <a href="https://en.bitcoinhaber.net/analysts-foresee-major-crypto-shift" data-wpel-link="internal" rel="noopener noreferrer nofollow">Analysts Foresee Major Crypto Shift</a><br></p>
<p style="text-align: justify">A significant number of cryptocurrency investors, sensing an impending crucial event, have been offloading their holdings for a while. Although the <a href="https://newslinker.co" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="exclude">future</a> direction remains uncertain, prolonged price stagnation generally leads to a breakout. This raises the question: why did an on-chain analyst recently sound the alarm about a potential time bomb in the crypto market?</p>
<h2 id="what-are-sth-whales">What Are STH Whales?</h2>
<p style="text-align: justify">Axel Adler Jr., a well-known on-chain analyst from CryptoQuant, has issued a stark warning based on unrealized profit and loss metrics. He highlighted that the market has been jittery due to small-scale sales from MTGOX and government assets. However, Adler points out that the unrealized losses of short-term holder (STH) whales, totaling 218,000 <a href="https://en.bitcoinhaber.net/bitcoin-market-nears-halving-analyzing-potential-impacts-and-movements" data-wpel-link="internal" rel="noopener noreferrer nofollow">BTC</a>, could spell disaster if these large-scale investors panic.</p>
<p style="text-align: justify">STH whales are essentially large <a href="https://finance.coin-turk.com/" rel="noopener noreferrer nofollow" target="_blank" data-wpel-link="exclude">short-term investors</a> who make significant market moves. Additionally, ETF issuers’ reserves, which are controlled by seasoned traditional market investors, hold a massive $50 billion in the ETF channel. This substantial reserve could have a significant impact on market dynamics if tapped into.</p>
<h2 id="market-indicators-a-closer-look">Market Indicators: A Closer Look</h2>
<p style="text-align: justify">CryptoQuant’s expert, Mignolet, pointed out that the vital cost level is $64,000. He noted that if the market is still in a bullish phase, short-term SOPR data indicate that prices are approaching a bottom, similar to patterns observed last September. This suggests a potential market reversal, provided it happens swiftly to avoid the ‘time bomb’ scenario.</p>
<h2 id="key-insights-for-investors">Key Insights for Investors</h2>
<p style="text-align: justify"><strong>Valuable Inferences:</strong></p>
<ul>
 <li>Monitor unrealized losses among short-term holder whales for potential market impact.</li>
 <li>Pay close attention to ETF issuer reserves and traditional market investors’ actions.</li>
 <li>Keep an eye on short-term SOPR data for signs of market bottoming.</li>
 <li>Be prepared for potential rapid market reversals and act swiftly.</li>
</ul>
<h2 id="busy-week-ahead-for-crypto-markets">Busy Week Ahead for Crypto Markets</h2>
<p style="text-align: justify">The upcoming week is loaded with significant events. Investors will closely watch the release of PPI and CPI data and Federal Reserve Chairman Powell’s statements over the course of two days. A continued drop in inflation rates is critical and could serve as a strong motivator for risk market investors soon.</p>
<p style="text-align: justify">Current forecasts suggest a stable interest rate for July, according to FedWatch. The recent downward adjustment in Non-Farm Payroll data indicates the Federal Reserve’s desired relaxation in employment, which could lead to pricing in a total of two 50 basis point cuts before the end of the year.</p>
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on BH NEWS: </span> <a href="https://en.bitcoinhaber.net/analysts-foresee-major-crypto-shift" data-wpel-link="internal" rel="noopener noreferrer nofollow">Analysts Foresee Major Crypto Shift</a></h5>

Analysts Foresee Major Crypto Shift

Table of Contents

BH NEWS

Other articles published on Jul 8, 2024

Whale Alert: Massive 300 Million XRP Transfer Sparks Speculation

Lavarage Announces Public Launch at the Solana Summit APAC

BTC is oversold while price volatility declines

Bitcoin’s Bearish Trend: Will BTC Reclaim $60K and Break Above the Daily EMA200?

Celo Unveils Dango L2 Testnet to Scale Ethereum

Qubetics Whitelist Stands Tall in a Market Shaken by Ethereum and Filecoin’s Woes

Join our free newsletter for daily crypto updates!