Bitcoin drops to 1-month lows ahead of a macro week dominated by FOMC

View in browser Bitcoin drops to 1-month lows ahead of a macro week dominated by FOMC "I always thought the second country to adopt a #Bitcoin Standard would be in LATAM, but what if it's the USA? Imagine how fast things would move after that." — Samson Mow Welcome to the Cointelegraph Markets weekly newsletter, where we look at the influential factors behind Bitcoin price action for the days ahead. Bitcoin is already amping up volatility ahead of a week full of potential surprises — but so far, it's not what bulls hoped it would be. BTC price action is dipping ever further below $30,000, which follows an entire month of barely any movement. As the established trading range sees a test, market observers are gearing up for unpredictable conditions throughout the coming week. The Federal Reserve will decide on interest rates, United States second-quarter gross domestic product will hit, and consumer spending habits — one of the Fed's preferred inflation gauges — will also come under the microscope. Under the hood, Bitcoin looks like it's taking stock of recent gains in more ways than just price. Network fundamentals are consolidating, and one metric governing hash rate is even amid its first "capitulation" since late 2022. Is it still "business as usual" for Bitcoin, or is the market due for a deeper drop? Cointelegraph takes a look at the major market-moving factors for the week ahead. Continue reading to discover five things worth taking note of as crypto faces a potentially challenging few days. A bad weekly close gets worse Bitcoin looked promising into the weekly candle close, but bulls' hopes were soon dashed in some classic "fakeout" conditions. On July 24, BTC/USD headed lower still, tapping $29,000 for the first time in over a month. Will traders' predictions of deeper downside wicks come true? Free report: The top 10 performing coins of 2023 The race to the top is on as 6 of these coins have shot up by triple-digits. The other 4 took off by double-digit gains. We believe the solid projects behind these coins will drive them to new highs in the coming weeks and months. Get the list for free to get in before they take off again. Click here now for instant access FOMC precedes major U.S. data prints It's Federal Open Market Committee (FOMC) time again, and markets have rarely, if ever, been so confident about what the Fed plans to do. With a 0.25% interest rate hike priced in, volatility remains on the cards around the July 26 announcement — a classic for crypto throughout recent months. Other key U.S. macro figures will come in the days after FOMC, offering plenty of further risk asset catalysts. Difficulty and hash rate take a breather After months of almost consecutive all-time highs, Bitcoin network fundamentals are due to step back this week. Difficulty may even see its biggest drop of 2023 so far at around 4% on July 26. Meanwhile, the Hash Ribbons metric is back in "capitulation" territory. What's in an NVT Ratio cycle high? Bitcoin's Network Value to Transactions (NVT) Ratio is at its highest since 2019, marking a new peak for the current BTC price cycle. NVT seeks to measure the dollar value of on-chain settlement versus Bitcoin's market cap, signaling when the two diverge. However, its significance is subject to debate, with dynamic range NVT — a later modification — still within "normal" levels. Less supply for when more demand hits Bitcoin is increasingly in the hands of its long-term holders — those hodling for 155 days or longer. In fact, data shows 75% of the supply now resides with those entities. Almost 30% of the supply, meanwhile, has stayed dormant for at least five years — from before the pit of even the 2018 bear market. 3.5 million people follow us on social media: Download our official app: Share to Facebook Share to Twitter Forward email Cointelegraph Copyright © 2022, All rights reserved Mailing contact: Cointelegraph 21 W 46th St, New York, NY 10036-4119 USA You received this email because you signed up on our website.  Want to change how you receive these email? Unsubscribe | Update preferences