Matrixport: It is expected to reach a new high after a short decline! Bitcoin funding rates drop but open interest remains high

The cryptocurrency market has been falling since early June, with BTC falling from a high of 72,000 USD on the 7th. At close to four o'clock this morning (19th), the lowest price of BTC was 64,051 US dollars; however, it then started to rebound, and the current price at the time of writing was 65,162 US dollars. The decline in the past 24 hours narrowed to 0.64%.

Matrixport: Bitcoin may hit a new high after a brief decline

Faced with BTC’s repeated sideways market conditions, the cryptocurrency investment platform Matrixport posted pictures and texts on social platform X yesterday (18th) evening, pointing out that although the current market sentiment It is not optimistic, but the current market positions are still at a high level, so Bitcoin is expected to hit a new all-time high after a brief decline:

Bitcoin’s current funding rate is continuing to decline, which reflects that market optimism is weakening . However, the current level of open interest in Bitcoin is still at a high level, which may cause Bitcoin to reach new all-time highs again after a brief decline in price.

Bitfinex Analyst: Bitcoin is entering the consolidation phase

In addition, according to "TheBlock" report, Bitfinex analysts judged that Bitcoin's current decline may be due to the selling of long-term holders, and the market is Entering the consolidation phase:

Long-term Bitcoin holders and whales appear to be behind the recent market decline, both from exchanges and over-the-counter trading. Historically, long-term holders tend to gradually sell their Bitcoin holdings during bull markets, especially when the market enters a consolidation phase. Bitcoin whale holdings have continued to decline recently, clearly putting pressure on the market.

What are the potential benefits of the market?

But although the cryptocurrency market is currently wailing, the market may still rebound quickly due to the following positive factors:

1. Bloomberg analysts expect the Ethereum spot ETF7/2 to be listed

U.S. Securities and Exchange Commission (SEC) After approving the 19b-4 application documents for multiple Ethereum spot ETFs on May 24, SEC Chairman Gary Gensler disclosed at a hearing on June 13 that the SEC expected to approve Ethereum “sometime this summer.” S-1 registration application for spot ETFs. In view of this, Bloomberg ETF analyst Eric Balchunas decided on June 16 to advance the launch date of the Ethereum spot ETF to July 2. He revealed that he had heard that the SEC provided comments on the S-1 document to the issuer, The comments are brief and don’t have major issues, requiring a response within a week:

There’s a good chance the ETFs will be formally approved next week and the matter resolved before the holiday weekend. Anything is possible, but this is our best guess right now.

2. Expert: The Fed may adjust its interest rate cut expectations to two in September

Although the Fed's interest rate dot plot predicts that it will only cut interest rates once this year, the dot plot is only a reference after all and may change over time. Therefore, InflationInsights analyst Omair Sharif said on the day the Fed announced its interest rate decision that the Fed may change its interest rate cut expectations to two in September:

These forecasts from the Fed indicate that FOMC participants have inflation PTSD (post-traumatic stress disorder) ), the Fed may eventually change its forecast for two interest rate cuts in September.

3. Cryptocurrency has become an important

position for the US election

The quadrennial presidential election in the United States will be held in early November this year. Former US President Trump (Donald Trump), who represents the Republican Party, is actively seeking votes and challenging The re-elected current US President Joe Biden. The Biden administration may continue to loosen the regulations the crypto industry faces in the United States in an effort to attract pro-cryptocurrency voters.

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