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bitcoin-stumbles-60000-data-shows-slowing-inflows/” rel=”nofollow”>bitcoin (btc) and ethereum-etfs-mirrors-price-impact-to-bitcoin/” rel=”nofollow”>ethereum (eth) have started September in the red, having suffered price declines since the beginning of the month. This bearish sentiment towards major cryptocurrencies and by extension the cryptocurrency market in general is due to several crypto-macro-factors-to-take-center-stage/” rel=”nofollow”>macroeconomic factors.
The market is still feeling the effects of the yen carry trade
Recent events suggest that bitcoin and ethereum are still feeling the effects of the abandonment of the bitcoin-alert-boj-rate-hike-sparks-market-fears/” rel=”nofollow”>Yen carry tradeThe yen recently appreciated against the US dollar, suggesting that investors continue to sell riskier assets such as these cryptocurrencies to liquidate their carry trade positions, which used the underperforming yen.
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In an x (formerly twitter) x.com/jameslavish/status/1831140417632710976″ rel=”nofollow”>mailhedge fund manager James luxurious He also suggested that the effects of the yen carry trade were still at play. He noted that the Nikkei 225 had fallen 3.7% while the USD/Yen pair was trending lower.
Bank of Japan (BOJ) Kazuo Ueda also recently took a hawkish stance. statement that they will continue to raise rates if the economy and prices continue to behave as expected. This has also generated fear among traders and led them to close their carry trade positions, which has increased the selling pressure on bitcoin and ethereum.
bitcoin and ethereum suffered significant losses during the crypto-losses-fall-to-15-million-in-august-details/” rel=”nofollow”>Market crash on August 5thwhich was caused by the BOJ’s decision to raise interest rates for the second time since 2007. bitcoin, meanwhile, fell below $50,000, while ethereum dropped as low as $2,200. Therefore, with the effects of the yen carry trade still in play and the BOJ hinting at further rate hikes, bitcoin and ethereum are at risk of further price declines.
US stock market crash contributes to bitcoin and ethereum crash
Furthermore, the correlation of bitcoin and ethereum with the bitcoin-stability/” rel=”nofollow”>US stock market It has also contributed to its price decline since the beginning of September. Specifically, on September 3, more than $1.05 million vanished from the stock market, which also caused fear in the cryptocurrency market and led to a wave of massive sales. bitcoin and ethereum.
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This was evident in the outflows experienced by bitcoin and ethereum Spot ETFs that day. x.com/FarsideUK/status/1831177160872120418″ rel=”nofollow”>Data Farside investors proved that bitcoin-etfs-surges-with-massive-inflows/” rel=”nofollow”>bitcoin Spot ETF and ethereum-etfs-see-positive-inflow/” rel=”nofollow”>ethereum Spot ETF Total net outflows were recorded at $287.8 million and $47.4 million, respectively.
With such a bearish outlook for bitcoin and ethereum, there is an urgent need for a spark that can provide a bullish push for the cryptocurrency market. Members of the cryptocurrency community expect the US Federal Reserve to cut interest rates in the next few days. bitcoin-ever/” rel=”nofollow”>FOMC Meeting which will take place between September 17 and 18, as this will provide some relief to the market and help inject more liquidity into bitcoin and ethereum.
At the time of writing, bitcoin and ethereum are trading around $57,160 and $2,400, according to data from CoinMarketCap.
Featured image created with Dall.E, chart from Tradingview.com
