he stability of the Bitcoin price over the weekend –mostly trading between $54,000 and $55,000– saw traders debating which way the cryptocurrency might go.
Although Bitcoin's price action may have seen near-term volatility in the markets, some analysts believe that BTC is undervalued, considering key economic data and major political events later this week.
Bitcoin Current Price and Sentiment
Bitcoin hardly moved in price over the weekend, hovering within a tight range. The surprise drop in the market on Friday had seen over $220 million in crypto long positions liquidated. It occurred in the wake of a weaker-than-expected U.S. jobs report that showed the labor market was softer.
At the time of writing, Bitcoin has seen a 1.2% increase in the past day and is currently trading at around $55K
Presto Research traders note that at its value, Bitcoin is "grossly undervalued". Peter Chung and Min Jung, analysts at Presto, underlined the fact that security in the Bitcoin network is at an all-time high, reaching a hashrate of 679 EH/s. For them, this is a record security level which is a key factor presently discounted by the market.
Forthcoming Economic Indicators: CPI and PPI
This promises to be an eventful week in light of the number of critical economic indicators due for release. The August 2024 CPI is scheduled to be released on Tuesday, September 17, 2024.
The release of the PPI data is due on Wednesday, September 18, 2024. These are important indicators of consumer prices and changes in inflation, which would add to market sentiment.
According to Lucy Hu, senior analyst at Metalpha, last week's lower-than-expected U.S. payroll figures had a twofold effect– they reduced recession fears but broadened market volatility. She predicted that the crypto market will continue to be very reactive until the next Fed meeting.
Political Events: Trump-Harris Debate
The highly anticipated debate between Republican Donald Trump and Democrat Kamala Harris on Tuesday, September 12, 2024, is likely to make this week's market-moving events even more interesting.
Both candidates have presented contrasting stances on their cryptocurrency policies, with Trump wanting to make the U.S. the "crypto capital" of the world, while Harris has expressed support for policies to grow the crypto industry.
This debate might significantly impact market perception, specifically among the more sensitive crypto investors who closely follow every hint of policy shifts that may pertain to the industry.
Traders and investors will have to be well-apprised with key economic data releases and high-stakes political debates.
Whether Bitcoin is undervalued, as some traders claim, will likely get clearer over the days ahead.
