Hyblock Capital CEO Explores Bullish Crypto Trends Against US Economic Turmoil

• The Bitcoin Fear & Greed Index has been hovering around theFear' and Extreme Fear' zonesthis month, highlighting market volatility.
• Hyblock Capital CEO, Shubh Varma, suggests macroeconomic factors like declining US employment rates contribute to the crypto market's downturn.
• However, he believes bullish times are ahead, as signaled by the Federal Reserve cutting interest rates and low order book liquidity.

The crypto sector has witnessed heightened volatility, as evidenced by the Bitcoin Fear and Greed Index hovering between Fear' and Extreme Fear' over the past month.

A recent report by the Hyblock Capital CEO, Shubh Varma, suggests that macroeconomic factors (including declining US employment rates) heavily influence $BTC's value and, thus, the entire crypto industry.

However, Varma suggests that these market downturns are a good opportunity for astute crypto investors who have a good handle on broader market dynamics.

$BTC Drops 10% This Month, Remains in the Fear Zone

Bitcoin's Fear and Greed Index hovering between Extreme Fear' and Fear' territories has been raising industry doubts.

This past month, Bitcoin's highest level was ~$64K (~14% lower than its ~$73K ATH in March).

Its monthly peak has since plummeted by nearly 10% to ~$58K (accompanied by harmful swings in between), signaling dwindling investor interest in the world's largest virtual currency.

Crypto Drops Alongside US Job Employment Growth$BTC is perceived as the gold standard' in the crypto market. When its value declines, other cryptocurrencies soon follow.

A number of macroeconomic factors - particularly in the US - could contribute to volatility surrounding Bitcoinand the overall crypto market.

According to Varma, the recent US Non-Farm Payrolls' report (which highlights a considerable drop in US job employment since March) could have triggered the crypto market to react negatively.

This sentiment shift underscores the fragile nature of current market conditions and the tendency of traders to overreact to fluctuations.Shubh Varma

Despite showing a slight increase last month, US employment growth has dropped by a considerable ~118% over the past six months (from 310K job gains in March to just 142K in August).

Risk Assets May Thrive on Economic Changes, Says Varma

Despite the US economic turmoil, Varma's report states that it maypresent an opportunity for those who pay attention to the broader picturebecause markets eventually recalibrate to these realities.'

He believes underlying economic trends, such as the Federal Reserve reducing US interest rates, provide a more robust environment for risk assets in the near term.

According to him, current low order book liquidity(including buys and sells) also signals bullish potential.

With fewer orders sitting in the books, it becomes easier to move the price higher, a trend we have already observed in recent market movements.Shubh Varma

For example, this Hyblock graph shows how raising the price of Bitcoin/Tether is much more manageable with fewer orders in the books.

Another factor highlighted by Varma that suggests a market rebound is the bid-ask ratio (an indicator that shows whether crypto investors want to buy or sell), remaining positive over 1.4K cryptocurrencies (tickers).

Varma also has a contrasting viewpoint to other crypto enthusiasts: Donald Trump's pro-crypto stance (even if winning the presidential race) might not affect the industry as anticipated - the hype might have already come and gone.

There has been an assumption that a Trump victory could be bullish for crypto. However, this belief may already be priced into the market.Shubh VarmaVerdict - A Bullish Turnaround Despite Economic Doubts

While the Bitcoin Greed and Fear Index isn't currently optimistic on the broader crypto market, Varma gives traders clued up about broader market dynamics a glimpse of hope.

Despite financial markets being cautious about dwindling US job rates and upcoming policies, currenteconomic happenings could be catalysts for a bullish turnaround.

The Hyblock Capital CEO insights encourage proactive investment approaches and the need to shift one's attention to long-term profits amid temporary volatility.

References

Click to expand and view sources

• Crypto Fear and Greed Index - Bitcoin Momentum Tracker (Cointree)
• Bitcoin's Price Today (CoinMarketCap)
• United States Non Farm Payrolls (Trading Economics)
• Fed to cut rates by 25 basis points on Sept. 18, twice more in 2024: Reuters poll (Reuters)
• The Official Hyblock Capital Website (Hyblock Capital)

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