Bitcoin ended July with a gain of about 7.5%, but analysts cited in an Odaily report said the market may still face a volatile stretch in August. Bitfinex analysts said part of Bitcoin’s resilience came from positioning: after the sell-off at the end of June, derivatives traders had already cut exposure heavily by the time BTC fell below $58,000 on July 1, leaving crypto leverage well below that seen in equities. STS Digital managing partner Jeff Anderson said the market may be entering a “new volatility regime,” with investors shifting between expectations for rate cuts, a pause, and hikes. He said that uncertainty could continue to weigh on BTC and other high-beta assets until the economic outlook becomes clearer. The comments point to a market that has recovered on the back of cleaner positioning, while macro uncertainty still hangs over the near-term path.
Bitcoin closed July up about 7.5%, according to Odaily.
Bitfinex analysts said part of that resilience was tied to market positioning. After the late-June sell-off, derivatives traders had already cleared out a large amount of exposure by the time BTC fell below $58,000 on July 1, leaving leverage in crypto far below levels seen in the stock market.
Jeff Anderson, managing partner at STS Digital, said the market may be entering a “new volatility regime.” He said investors are wavering between expectations for rate cuts, a pause, and hikes, and that uncertainty may keep pressuring BTC and other high-beta assets until the economic outlook becomes clearer.
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