A significant number of cryptocurrency investors, who are aware of an upcoming major event, have been selling their holdings for some time now. While the direction of the market remains uncertain, it is common for prices that have been stagnant for a prolonged period to eventually break out. This is why an on-chain analyst recently issued a warning about a potential time bomb in the crypto market.
Axel Adler Jr, a renowned on-chain analyst who shares his insights on CryptoQuant, focuses on analyzing unrealized profits and losses. Based on his observations, he sounded the alarm by issuing a time bomb warning. In his latest evaluation, he emphasized the significance of “STH whales,” which refers to large short-term investors who make substantial purchases. This term also includes reserves held by ETF issuers, with investors from traditional markets controlling a total reserve of $50 billion in the ETF channel.
Additionally, CryptoQuant expert Mignolet highlighted the fundamental cost of $64,000, underscoring the urgency for the markets to reverse their current trend before the potential time bomb explodes.
Apart from these concerns, the crypto market also faces a busy agenda this week. Key data, such as the Producer Price Index (PPI) and Consumer Price Index (CPI), will be released. Furthermore, market participants will closely monitor the statements of Federal Reserve Chairman Powell over the next two days. The continuous decline in inflation is crucial and could serve as a significant motivating factor for investors in risk markets.
According to FedWatch, the market interest rate forecast for July is expected to remain stable. However, the recent downward revision of the Non-Farm Payroll data indicates that the Fed desires a more relaxed employment scenario, leading to market expectations of two 50 basis point cuts before the end of the year.
It is important to note that the information provided in this article should not be considered as investment advice. Investors should be aware of the high volatility and associated risks of cryptocurrencies and should conduct thorough research before making any investment decisions.
