Key Points
- Bitcoin’s value remains steady, with potential market fluctuations expected due to upcoming US economic data and the Trump-Harris debate.
- Other major cryptocurrencies also show minor changes, while Bitcoin’s network security is seen as a sign of long-term growth.
Bitcoin’s price has remained stable over the recent weekend, fluctuating between $55,000 and $58,000.
Traders are anticipating increased market volatility this week due to the release of key US economic data, including the Consumer Price Index (CPI), and the impending Trump-Harris debate which could influence market sentiment.
Impact of US Jobs Report
The subdued trading activity in Bitcoin follows the recent US jobs report which led to the liquidation of over $220 million in long positions. This sell-off has caused a decrease in momentum, leaving traders anxious for further economic indicators.
Other major cryptocurrencies such as Ethereum, Solana, and Tron have also experienced minor changes of about 0.6% in the last 24 hours. However, mid-cap tokens like BitTorrent (BTT) have seen a significant 128% increase.
Bitcoin’s Network Security
Despite the market’s stagnation, experts at Presto Research view Bitcoin as significantly undervalued. Analysts Peter Chung and Min Jung highlighted that the market is overlooking Bitcoin’s key strength: its network security.
Bitcoin’s hashrate, a measure of the total computing power securing the network, reached a record high of 679 exahashes per second (EH/s) in September 2024. This increase indicates a rise in mining activity, suggesting a solid foundation for future growth.
Chung and Jung believe that the rising hashrate signals a positive outlook. The availability of spot ETFs has placed Bitcoin in a stronger position than ever before, making it seem undervalued according to their analysis.
This increase in miner activity, which started in August, is often seen as a sign of market bottoms for Bitcoin. The expansion of mining operations indicates growing confidence in price stability. Many analysts believe this could be a catalyst for a significant rise in Bitcoin’s price.
Upcoming Market Influencers
Moving forward, Bitcoin traders are closely monitoring two major events this week: the release of August’s CPI data on Tuesday and the Producer Price Index (PPI) figures on Wednesday. Both reports will provide crucial insights into the state of U.S. inflation and are likely to impact Federal Reserve policy in the upcoming months.
Additionally, the first Presidential debate between Donald Trump and Kamala Harris is contributing to market uncertainty. Trump, who aims to transform the U.S. into a global crypto hub, might make statements that could impact both the political and crypto landscapes.
Harris’s position is less clear, but her team is reportedly considering policies that could enhance the cryptocurrency sector. As a result, the outcome of the debate could affect investor attitudes and cause further market fluctuations.
Lucy Hu from Metalpha, a market expert, pointed to recent weaker US payroll data, which has sparked asset sell-offs since Friday. She noted that the crypto market is likely to remain unstable as the next Federal Reserve meeting approaches.
