CoinJie.com reports:
Many cryptocurrency investors have become aware of an upcoming key event and have been selling off for a while. Although the future direction is still uncertain, prolonged price stagnation often leads to a breakthrough. This raises the question: why did a renowned on-chain analyst recently issue a warning about a potential time bomb in the cryptocurrency market?
What is the STH Whale?
Axel Adler Jr., a well-known on-chain analyst at CryptoQuant, issued a stern warning based on the unrealized profit and loss indicator. He emphasized that the market has been uneasy due to the small-scale sales of MTGOX and government assets. However, Adler pointed out that if these large-scale investors panic, the unrealized losses of short-term holders (STH) whales, totaling 218,000 BTC, could bring disaster. Visit COINTURK FINANCE for the latest financial and business news.
STH whales are essentially large short-term investors who make significant market moves. In addition, ETF issuers controlled by experienced traditional market investors hold a massive reserve of $50 billion in the ETF channel. If this substantial reserve is mobilized, it could have a significant impact on market dynamics.
Market Indicators: A Closer Look
Mignolet, an expert at CryptoQuant, points out that the key cost level is $64,000. He notes that if the market is still in a bull phase, short-term SOPR data suggests that prices are approaching the bottom, similar to the pattern observed in September last year. This indicates that if a reversal occurs quickly to avoid the “time bomb” scenario, the market may experience a turnaround.
Key Insights for Investors
Valuable inferences:
Monitor the unrealized losses of short-term spine whales to understand potential market impact. Keep a close eye on the reserves of ETF issuers and the behavior of traditional market investors. Pay close attention to short-term SOPR data to look for signs of market bottoming out. Be prepared for potential rapid market reversals and take swift action.
Busy Week in the Cryptocurrency Market
The upcoming week is filled with significant events. Investors will closely watch the release of PPI and CPI data within two days, as well as statements from Federal Reserve Chairman Powell. The continued decline in inflation rates is crucial and could soon become a strong driver for risk market investors.
According to FedWatch data, the current forecast shows interest rates staying stable in July. The recent downward revision of non-farm wage data suggests that the Fed wants to ease employment, which could lead to two 50 basis point cuts before the end of the year.
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Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies are highly volatile and carry risks, and should conduct their own research.
