Bitcoin and Altcoins Rebound After Macro Uncertainty
Bitcoin and major altcoins are showing signs of recovery after a significant dip last week, driven by macro uncertainty. Bitcoin rose 1.22% to $114,738, while Ether gained 3.12%, XRP surged 6.32%, and Solana added 1.66%. This rebound comes after a notable drop from around $119,000 to a low of $111,800.
What Triggered the Dip?
The recent market dip was attributed to a broader risk-off sentiment following the disappointing July U.S. nonfarm payrolls report, which showed only 73,000 jobs added—far below expectations. This, coupled with declines in the U.S. stock market, led to profit-taking across the crypto market.
Institutional Buying the Dip
Analysts note that institutional investors and long-term holders quickly moved to buy the dip, taking advantage of the lower prices. Jeff Mei, COO at BTSE, highlighted that the recent flurry of crypto treasury companies buying assets and TradFi institutions rolling out crypto services is a bullish sign for Bitcoin's future.
Traders Remain Cautiously Optimistic
Despite the rebound, traders are cautiously optimistic. The Fear and Greed Index is tilting towards greed, indicating improving sentiment. Investors are now looking ahead to the upcoming July CPI release on Aug. 12, a key inflation indicator that could influence the next interest rate decision.
Regulatory Clarity on the Horizon
Kronos Research CIO Vincent Liu pointed to the SEC's 'Project Crypto' as a potential positive catalyst. This initiative aims to modernize regulations by clarifying token classifications and introducing an innovation exemption for DeFi, which could boost market confidence in the coming months.
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