The majority of major cryptocurrencies are languishing again, what’s wrong?

Posted by – The majority of the crypto market languished again in trading Thursday (9/5/2024), amid a wave of supply worth billions of dollars that could delay crypto recovery.

According to data from CoinMarketCap at 14:50 WIB, Bitcoin was observed to have weakened 1.43% to US$ 61,395.76 per chip. Meanwhile, Ethereum also corrected 0.4% to US$ 2,989.63 per chip.

Meanwhile, today’s BNB, Toncoin and Cardano coins were observed to have strengthened by 3.23%, 7.01% and 3.73% respectively.

In the last week, the main cryptocurrencies are still recording gains, with Bitcoin still soaring 6.44%, Ethereum soaring 2.14%. Meanwhile, Toncoin strengthened the fastest in the last week, reaching 26.74%.

“A rapid unlocking of nearly US$ 2 billion worth of tokens over the next ten weeks could bring down the altcoin market,” crypto analysis firm 10x Research noted in a report last Wednesday, quoted by CoinDesk.

Large token unlocks in crypto are typically bearish events, increasing supply by distributing assets previously locked in vesting contracts to team members, organizations and early investors including venture capital firms.

More than US$ 11 billion worth of Bitcoin will be distributed to creditors of the Gemini’s Earn crypto exchange program and the Mt. crypto marketplace. Gox which has not been operating for a long time.

“The coming months will be rigged to see a wave of good old crypto FUD,” said Lunde, referring to the popular crypto acronym for fear, uncertainty and doubt, reported by CoinDesk.

Apart from that, investors who are still weighing the timing of the United States (US) central bank’s interest rate cut mean they are not reluctant to return to the hunt for crypto. Moreover, the certainty of when the interest rate of the US central bank (Federal Reserve/The Fed) will not be visible means that the strengthening of crypto tends to be restrained.

Previously, Boston Fed President Susan Collins said the Fed’s interest rate policy would likely need to remain at current levels until inflation moves ‘sustainably’ towards the central bank’s target of 2%.

However, he stressed the need for the US economy to experience further moderation to reduce price pressures expected in the coming months.

“It will take longer than previously thought to return inflation to the Fed’s target level of 2 percent,” he said.

Even so, investors still predict that cuts will occur at the September meeting. Based on CME Group’s FedWatch tool, players estimate a 65% chance of the Fed cutting interest rates by at least 25 basis points (bp) in September, up from about 54% last week.

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