The latest research from Matrixport Research Institute shows that
- Risk assets continue to be affected by the macro economy, and inflation data may affect the recent market
- In times of great uncertainty, you may want to invest in options to balance your asset allocation
- The situation of the US election is still unclear, and the realization of the positive news is yet to be determined
Risk assets continue to be affected by the macro economy, and inflation data may affect the recent market
The current BTC price is in an oversold state. In the past, this situation usually led to a rebound, and the upcoming inflation data may boost market optimism.
Currently, risk assets are still greatly affected by macroeconomic factors, and recent concerns about economic growth and the job market have become the main influencing factors. The United States will release inflation data next week. If the inflation rate drops, especially if it can drop below 3.0%, traders will still respond positively, and BTC may usher in a recovery.
In times of greater uncertainty, you may want to invest in options to balance your asset allocation
Matrix on Target also recommended investing in options with low price advantages during low volatility last year. Protecting a portfolio through cheap put options or buying call options with minimal risk capital is a good way to reduce BTC exposure risk during uncertain times. Like last year, this year's 30-day realized volatility once fell to around 25% before rising sharply.
Trading volume and liquidity will decline in August, resulting in lower returns. The 18% plunge on Monday also confirms what was mentioned in last week’s report: “Bitcoin prices have begun to lose momentum recently, and coupled with the upcoming period of weakness, the challenging trading environment may continue for several weeks.”
The situation of the US election is still unclear, and the realization of the positive news is yet to be determined
Judging from the current situation, Trump is likely to win the 2024 US presidential election, but Harris's succession to Biden has dealt a blow to the Republican Party. Harris is currently ahead of Trump in the polls, and the handover on July 21 coincides with the BTC's weak rebound, which has a greater impact on BTC traders.
Conclusion
Investors should keep an eye on whether traders are trying to buy the dips. Circle stablecoin saw a large outflow last week, and the large inflow this week could be a sign of buy the dips. The relative strength index (RSI) is at 30%, which could be a buying opportunity, similar to what happened in June 2024. In a BTC bull market, while consolidation is possible, it is rare for the RSI to be below 30%.
Some of the above views come from Matrix on Target. Contact us to obtain the full report of Matrix on Target.
Disclaimer: The market is risky and investment should be cautious. This article does not constitute investment advice. Digital asset trading can be extremely risky and unstable. Investment decisions should be made after carefully considering personal circumstances and consulting financial professionals. Matrixport is not responsible for any investment decisions based on the information provided in this content.
