Amidst the turmoil in the global market, the cryptocurrency market has also experienced a rollercoaster trend.

Overnight, the US job market brought 'good news', easing concerns about a recession in the US economy, and the cryptocurrency market saw a significant rise. $Bitcoin (BTC.CC)$ It once broke through the $62,000 mark. $Ethereum (ETH.CC)$ It rose more than 14% to return above $2,700 as investors reinvested in risk assets in the financial market.

As of press time, Bitcoin has slightly retraced, now reporting $60,947.

Citigroup believes that Bitcoin has yet to live up to its reputation as 'digital gold'. The bank believes that while gold and Bitcoin are both limited supply, zero-yield tools, the original cryptocurrency does not have the 'value storage' properties of gold. They concluded that in the recent market adjustment, Bitcoin failed to serve as a hedge asset, confirming its current status as a risk asset.

However, the market currently generally believes that as the global financial market fluctuates, Bitcoin may experience significant volatility in a relatively large range next. In the medium and long term, as the first completely decentralized system token, the future price of Bitcoin may still have room for upward trend, and may even continue to set new highs.

From historical data, when risk appetite returns, Bitcoin often outperforms other major asset classes. In the past 12 years, Bitcoin has outperformed nine times. As a rule, it also conforms to the 'rising for three years and falling for one year' pattern mentioned in a previous article, which means that it rises before the halving year, the halving year, and the year after the halving year, and then falls for one year.

Multiple bullish news boosts market sentiment

In addition to the easing of market concerns about the US recession, the cryptocurrency market has also received multiple bullish news.

On Thursday, US judges approved a consent decree requiring cryptocurrency trading platform FTX and its sister company Alameda Research to pay up to $12.7 billion to creditors, putting an end to a 20-month lawsuit. Market analysts expect that as former FTX users reinvest funds in digital assets, the cryptocurrency market will see a significant increase in liquidity and trading depth.

At the same time, Russian President Putin has signed a bill formally legalizing cryptocurrency mining. CryptoQuant CEO Ki Young Ju pointed out that this seems to be catching up with the United States, and the national-level FOMO for Bitcoin is rising. This will help improve the hash rate of the global Bitcoin network, strengthen its infrastructure, and promote miner diversification.

In addition, Bloomberg analyst James Seyffart recently stated that he believes Bitcoin ETF options will be launched in the fourth quarter of this year.

What about the future market?

Cryptocurrency analyst Alex Kruger said: the current market crash is evidently driven by macro factors, not specific to the cryptocurrency industry. A financial crisis sparked by a large number of Japanese leveraged speculators would be much better than a crisis caused by a US recession.

As the US election gradually heats up, cryptocurrencies have also become an important topic of discussion.

Republican presidential candidate Trump said that if he returns to the White House, he will ensure that the government retains 100% of its Bitcoin holdings and will list Bitcoin as a strategic reserve asset of the United States.

Kamala Harris, the Democratic vice presidential candidate, also contacted top cryptocurrency companies to improve relations.

Brian Armstrong, CEO of the largest cryptocurrency exchange in the United States, Coinbase, predicts that the next US government will hold a constructive attitude towards cryptocurrencies.

However, despite the existence of these catalysts, JPMorgan is still cautious about the future development of the cryptocurrency market, and analysts believe that these catalysts may have been reflected in the prices. The bank said that because the Bitcoin price is still relatively high compared to its production cost and gold, the average production cost of Bitcoin mining is about $49,000, and any price trend lower than this level will put pressure on miners and further suppress Bitcoin prices.

Mooers,

What do you think the future trend of the cryptos market will be like?

Feel free to leave your thoughts in the comments section~

Editor/Somer