As of 3:30 p.m. on the 12th, the cryptocurrency market value recorded $2.1 trillion, down 1.13% from the previous trading day. Trading volume also fell 0.69% to $45.9 billion. Bitcoin's market dominance slipped 0.08 percentage points to 56.44%.
After reaching the $62,000 resistance level, Bitcoin quickly fell back, falling 1.39% to $59,721.05, returning below $60,000 again. Meanwhile, Ethereum fell slightly by 0.08% to $2,604.22.
Altcoins performed even weaker. Solana fell 5.47%, Ripple fell 5.53%, and Tron fell 6.63%. In addition, BNB fell 1.85%, Dogecoin fell 2.36%, and Cardano fell 3.32%.
There are different opinions on the future price trend of Bitcoin. Some experts warn that the price of Bitcoin may fall further and it will be difficult to hold the key support level of $60,000. On the contrary, other experts believe that the price of Bitcoin has shown signs of a "local bottom" and is expected to rise in the future. The market will pay close attention to the US Producer Price Index (PPI) released on the 13th and the Consumer Price Index (CPI) released on the 14th to predict the next direction of Bitcoin.
The cryptocurrency market experienced significant volatility last week as market participants await the release of key economic data this week. The Federal Reserve may cut interest rates for the first time this year at the September Federal Open Market Committee (FOMC) meeting, but New York stocks may see volatility again depending on the performance of economic data.
The Chicago Board Options Exchange Volatility Index (VIX), known as the "fear index," hit 65 at one point, the highest level since the outbreak of the COVID-19 pandemic in March 2020. The market put pressure on the Fed to hold an emergency meeting immediately and cut interest rates instead of waiting for the September FOMC meeting. However, the Fed did not give a clear response.
Market sentiment has eased somewhat as the New York stock market rebounded sharply as analysis showed that the US economy is still strong. Wall Street is now focusing on the upcoming CPI and PPI data. If these indicators are lower than expected, the New York stock market may fluctuate again.
The market is concerned that the consumer price index (CPI) in July may be higher than expected. If the CPI exceeds expectations, market volatility may increase. However, the possibility of the Federal Reserve holding an emergency meeting in August and deciding to cut interest rates is still small. Major banks around the world generally predict that there will be a rate cut in September. Unless the inflation data exceeds expectations significantly, the expectation of a rate cut in September will not be greatly affected.
In the cryptocurrency market, two major events occurred last week. First, the U.S. District Court for the Southern District of New York imposed a civil penalty of $125 million on Ripple Labs. This fine is only 6% of the $1.9 billion originally requested by the U.S. Securities and Exchange Commission (SEC). Therefore, many experts and market participants believe that this verdict is a victory for Ripple.
As early as December 2020, the SEC filed a lawsuit against Ripple, accusing it of being an "illegal securities." Ripple Labs insisted that Ripple was a "commodity" rather than a security.
Russian President Vladimir Putin has approved a bill to legalize cryptocurrency mining. The bill, which will reportedly take effect in November, will allow small, licensed miners to mine digital currencies without formal registration as long as energy consumption is below a certain threshold. The move has been interpreted as a strategic move by Russia to try to reduce its reliance on the U.S. dollar in international trade.
The analyst pointed out that "Bitcoin rebounded quickly after the sharp drop last week, but encountered pressure at key resistance levels and may turn bearish again in the short term." He added: "To form a positive trend, Bitcoin needs to break through the key resistance of $63,400. If the pressure is too heavy, Bitcoin may fall to the $54,000 to $56,000 range before rebounding again."
