Following recent market turbulence that saw Bitcoin (BTC/USD) plummet and the VIX spike to 66, crypto and macro experts are dissecting the causes and potential implications for both digital assets and traditional markets. On the latest episode of ‘Bits and Bips,’ Bloomberg analyst James Seyffart, macro trader Alex Krüger, and Asymmetric founder Joe McCann joined host Chris Cecere to analyze the events and offer their perspectives on what lies ahead.
The experts identified a confluence of factors that contributed to the market downturn, including the Bank of Japan’s surprise rate hike, weakening economic data, and large-scale selling in thin weekend crypto markets. McCann described the extreme sentiment, saying, “The sentiment was like suicide watch. It was so bad on Sunday night.” The panel also debated the reasons behind major crypto market maker Jump Trading’s significant Ethereum (ETH/USD) sales during the weekend, emphasizing that thin order books exacerbated the price impact.
For crypto investors, the experts offered several key takeaways:
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Stay alert to economic data
: Upcoming payroll numbers, for example, could significantly influence market direction.*
Monitor global liquidity trends
: McCann sees potential for bullishness in risk assets if central banks coordinate rate cuts.The panel’s primary focus centered on the Federal Reserve’s upcoming decisions and their potential impact on crypto markets. McCann advocated for a 50-basis point cut in September, arguing, “We think that the Fed screwed up. We think that they should have cut in July, and I think the market agrees.” Krüger agreed, adding, “I think they need to cut 50 basis points. 50 will be bullish, 25 is either a wash or bearish, and no cut would be absolutely a disaster.”
The experts also emphasized the importance of the upcoming Jackson Hole Economic Symposium, where Fed Chair Jerome Powell is expected to signal the central bank’s intentions regarding rate cuts.
Despite the recent volatility, the panel remained cautiously optimistic about crypto’s long-term prospects. They suggested that the market washout could present opportunities for investors, with McCann noting, “When people really start getting this scared, it’s usually when you’re very close to a bottom.”
The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on November 19.
The content was partially produced with the help of AI tools and reviewed by Benzinga editors.
