Three crucial expectations from the crypto market in August
The digital currency ecosystem seems to be finding a resilient path for itself recently, with the combined crypto market cap consistently staying above the $1 trillion benchmark.
The market is now seeing impressive price recoveries across the board, with Bitcoin (BTC) is rising past the $23,000 resistance point and Ethereum (ETH) is charting a 30-day high of $1,774.58. Overall, the market is showing signs that the crypto winter may be coming to an end, but while investors may want to start packing new coins into their portfolios, these three main expectations should remain top of mind in August.
1. The global economy is not out of the woods yet
One of the main reasons why the crypto ecosystem was neglected was the inconsistency of the global economy. While the economy is still recovering from the onslaught of the coronavirus pandemic, Russia’s invasion of Ukraine also contributed enormously to the strain on the global supply chain.
This economic instability has thrown many nations into recession, including the United States, which has struggled with rising inflation for the past two quarters. With a low Q2 GDP and rising interest rates, the negative outlook for the US economy along with other developed countries may continue to weigh stock marketand by extension, on the crypto ecosystem.
2. Institutional investors’ focus cannot lead to massive rally
The influx of institutional money into the digital currency ecosystem in 2021 was one of the reasons why the industry experienced such massive growth that pushed Bitcoin to an All-Time High (ATH) above $69,000 at the time.
While corporate money is still flowing into the digital currency ecosystem, it’s important to note that the focus is different this time around. Investors are starting up projects with the right fundamentals and infrastructure that can support the Web3.0 future everyone has been clamoring for.
As such, investors’ money will be visible in August, but investment decisions should not be made with the hope that these funds will chart quantum leaps
3, crypto volatility can be more resounding
The macroeconomic climate will also create massive price fluctuations across the board in August. Although this is bound to be an all-encompassing trend, Ethereum investors will need to be more vigilant as it is fast approaching The Merge that will usher in Ethereum 2.0 will likely lead to massive price volatility as positions will be opened and closed on a more consistent manner. basis.
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