Coinspeaker
Bitcoin Remains Steady Ahead of CPI Data Release and Trump-Harris Debate
Bitcoin
BTC
$56,566
24h volatility:
4.1%
Market cap:
$1.12 T
Vol. 24h:
$32.18 B
has been relatively consistent over the past weekend, maintaining a range between $55,000 and $58,000. Although the market is quiet, traders anticipate heightened volatility this week due to significant events, including critical U.S. economic indicators, especially the upcoming Consumer Price Index (CPI) release. Additionally, the forthcoming Trump-Harris debate is expected to sway market sentiment.
The decline in BTC trading activity followed Friday’s U.S. jobs report, which led to the liquidation of over $220 million in long positions. This sell-off has created a cautious atmosphere among traders as they await further economic signals.
Other prominent cryptocurrencies such as Ethereum
ETH
$2,342
24h volatility:
3.0%
Market cap:
$281.98 B
Vol. 24h:
$14.94 B
, Solana
SOL
$133.0
24h volatility:
3.2%
Market cap:
$62.23 B
Vol. 24h:
$2.65 B
, and Tron
TRX
$0.15
24h volatility:
1.0%
Market cap:
$13.40 B
Vol. 24h:
$430.72 M
demonstrated slight fluctuations of approximately 0.6% in the last 24 hours. Conversely, mid-cap tokens like BitTorrent (BTT) saw an impressive rise of 128%.
Bitcoin’s Network Security Strengthens Bullish Sentiment
In spite of the market’s stagnation, experts at Presto Research consider Bitcoin to be significantly undervalued. Analysts Peter Chung and Min Jung noted that the market is missing a crucial aspect of Bitcoin: its network security.
Bitcoin’s hashrate, which gauges the total computing power protecting the network, achieved a new peak of 679 exahashes per second (EH/s) in September 2024. This increase indicates a rise in mining activity, suggesting a robust foundation for future growth.
Chung and Jung assert that the increasing hashrate reflects a favorable outlook. The availability of spot ETFs has positioned Bitcoin more favorably than ever, leading to their view that it remains undervalued.
This surge in mining operations that began in August has historically indicated market bottoms for Bitcoin. The expansion of mining activities signifies growing confidence among miners regarding price stability. Many analysts believe this could lead to a substantial increase in Bitcoin’s value.
CPI and Trump-Harris Debate Poised to Impact Markets
Looking forward, Bitcoin traders are keenly observing two pivotal events this week: the release of August’s CPI data on Tuesday and the Producer Price Index (PPI) figures on Wednesday. Both reports are crucial for gauging U.S. inflation and are anticipated to affect Federal Reserve policy in the foreseeable future.
In addition, the first presidential debate featuring Donald Trump and Kamala Harris is contributing to market unease. Trump, who aims to establish the U.S. as a global cryptocurrency hub, may make remarks that could disrupt both the political and crypto arenas.
Harris’s position is less defined, but her team is reportedly examining policies that could support the cryptocurrency industry. Consequently, the debate’s outcome may influence investor perceptions and lead to increased market volatility.
Moreover, market analyst Lucy Hu from Metalpha highlighted that recent weak U.S. payroll data has sparked asset sell-offs since Friday. She pointed out that the crypto market is likely to remain volatile as the next Federal Reserve meeting approaches.
