FalconX: Bitcoin and Ethereum Resemble 2019 Crypto Market Sentiment

The crypto market has seen a slight decline coinciding with a busy macroeconomic calendar that has impacted major blue-chip assets such as Bitcoin (BTC) and Ether (ETH). On Monday, July 24th, BTC and ETH fell below their respective key resistance levels of $30,000 and $2,000, resulting in a 2.9% decline in total crypto market capitalization, which now stands at $1.2 trillion.

Both BTC and ETH remained relatively stable over the last 24 hours, falling 0.3% to around $29,200 and $1,850, respectively. However, they suffered heavier losses of 3% and 2% at the beginning of the week, making them the sharpest decliners in the last 10 days.

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The crypto market according to FalconX

The current market sentiment resembles that of 2019, where the crypto industry is teeming with potential developments but the broader markets are paying little attention, as noted in the weekly newsletter of crypto prime brokerage FalconX. In addition, trading volumes for BTC and ETH have reached near-annual lows.

Despite the overall decline, some smaller cap assets are proving promising, possibly due to increased interest following the recent ruling between Ripple and the SEC and Blackrock’s updated spot bitcoin ETF. Chainlink (LINK) posted double-digit returns this month due to the successful deployment of its Cross-Chain Interoperability Protocol, which enables token and message exchange across multiple chains.

Dogecoin (DOGE), the popular meme coin, also outperformed other assets, with its market cap reaching a three-month high of over $11 billion. DOGE was sensitive to speculation about possible payment integrations on Twitter, which is now in

Although some assets posted outsized gains, overall market sentiment remains calm. Market observers are now paying close attention to upcoming macroeconomic events that could disrupt this calm. The Federal Open Market Committee (FOMC) decision, sharp oil price increases, second-quarter GDP figures from the U.S., and an expected interest rate hike by the European Central Bank are some of the factors that could affect the crypto market.

The crypto market is facing challenges from macroeconomic events

Although the correlation between digital assets and the broader markets has weakened recently, analysts still believe that global developments and their impact should not be ignored. Crypto volatility has decreased in both real and implied terms, presenting a potential buying opportunity for investors looking to protect themselves from potential spikes in the broader market during the busy macroeconomic week.

Jason Pagoulatos, Markets Associate at Delphi Digital, suggested that some capital outflow is to be expected due to exuberance over bullish fundamentals in June and July. He pointed out that the path of least resistance for BTC could be a continuation of the downtrend, with a target range of around $28,000 to $27,000 an attractive level for buyers.

As the crypto market faces potential challenges from macroeconomic events, traders and investors should be watching developments closely to gauge the impact on digital assets and plan their strategies accordingly.

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(Featured image by AgelessFinance via Pixabay)

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