Crypto market weakens as investors await U.S. economic signals

The cryptocurrency market has continued its correction this week amid lingering uncertainty over U.S. data. Bitcoin and ETH dropped 4.8% to $99,368 and 5.3% to $3,225 on November 14, but unpublished key U.S. economic indicators have left a statistical vacuum.

The White House has acknowledged the possibility that October’s CPI (Consumer Price Index) data and employment data may not be released due to a faulty statistical system. Some government operations are still recovering following the longest-ever U.S. federal government shutdown.

However, Shin Young-seo, a researcher from Xangle, stated that, even with the end of the shutdown, market uncertainty remains strong due to the lack of indicators. Shin believes it is necessary to closely monitor the U.S. Fed’s potential interest cut in December, along with employment and CPI data.

Pham wants crypto investors to borrow despite market downturn

Caroline Pham, acting chair of the CFTC, recently announced that the Commission is introducing leveraged spot trading. Investors will now be allowed to borrow to take positions larger than their current holdings. 

The U.S. Commodity Futures Trading Commission (CFTC) is pushing to allow leveraged spot crypto transactions through regulated exchanges. Pham said the Commission is in consultation with several regulated exchanges, with plans to launch leveraged spot transaction products soon.

However, Maarten Regterschot, a verified CryptoQuant analyst, stressed that CryptoQuant’s Bull Score is lighting up bear market territory with 8 out of 10 key on-chain metrics being bearish. 

Regterschot observed that stablecoin liquidity is falling, network activity is fading, and capital is exiting derivatives. He pointed out that the pattern was the same in the late 2021 and early 2022 cycle.

Adam Chu, chief researcher at GreeksLive, also said, judging by market movements over the past three months, the market is definitely bearish. The bearish sentiment is reflected in falling investor confidence, as seen on the Myriad prediction market. Users’ chances of Bitcoin hitting $115,000 before $85,000 have dropped from 71% to 46% in four days.

Thakral says crypto is in a corrective phase

The CEO of BuyCoin, Shivam Thakral, stated that the crypto market is currently in a corrective phase within a broader cycle. He pointed out that a few key indicators will determine whether this correction turns into a full-blown bear market. 

Meanwhile, Pepperstone Research strategist Dilin Wu advised that traders remain cautious in the near term. However, Thikal believes it is now less about calling tops and bottoms and more about recognizing that crypto is transitioning from an overheated environment to a more measured one.

Asset manager 10x Investments also emphasized that there is no longer the smell of a bear market; Bitcoin and most crypto-related assets are in a bear market. The firm explained that Bitcoin remaining below the long-term moving average is a sign of slowing momentum.

10X Research recently stated that the crypto market has entered a confirmed bear regime. The research firm noted that this aligns with multiple on-chain indicators, which confirm that Bitcoin is in a bear market. The company warned that Bitcoin could plummet even further if it falls below $93,000.

Fundstrat’s Sean Farrell is also becoming more cautious on the crypto market. He told investors that the momentum, or lack thereof, for Bitcoin is a major issue right now. He believes the crypto market is in a scenario where there is a lack of catalysts. 

Farrell points out that the government shutdown lasted longer than investors expected, and a liquidity boost from renewed spending will take time to impact the economy. He thinks that a revisit to the low $90,000 range for Bitcoin will do the trick.

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