The latest report by K33 highlights significant factors that might delight those anticipating a downturn in cryptocurrency markets. The report emphasizes overlooked catalysts, projecting that Bitcoin (BTC) 
$91,081 might soon fall below $100,000. As the report was compiled, BTC hovered just beneath the $112,500 support level, suggesting potential devastating impacts on altcoins.
Anticipated Decline in Cryptocurrencies
K33 Research’s recent analysis offers a bleak outlook for crypto investors, warning those expecting a recession of the approaching opportunity. Their report sees September as central to Federal Reserve independence debates, with macro catalysts historically overlooked. Vetle Lunde, Head of Research at K33, considers these catalysts as the ignored forces in today’s market landscape.
Analysts describe the current phase as one of consolidation yet consider it more akin to stagnation. They foresee macroeconomic factors potentially dragging Bitcoin’s value below six-digit figures in September. This month has historically recorded a sharp average decline of 4.6%, standing out as a predominantly negative period since 2011. This year’s September started amid controversy over attempts to remove a Federal Reserve committee member, Cook.
September’s Cryptocurrency Forecasts
A Federal court delayed a decision declaring tariffs illegal until October. This freeze, bolstering Trump’s negotiation positions, concludes next month. Notably, the effects of tariffs on inflation have become increasingly evident, with the upcoming August inflation reports likely to further highlight this trend.
Optimistic Federal Reserve members predict that tariffs will significantly influence inflation over the next six months. This outlook, coupled with mounting macroeconomic concerns, led Lunde to sell a significant part of his BTC holdings in the past month.
Lunde anticipates that macroeconomic risks will become more apparent, thereby increasing investor inclination to sell. He also highlighted the influence of fluctuating funding rates between neutral and negative, reflecting significant pressures in either direction.
Lunde remains optimistic regarding the long-term future of BTC, pointing to support levels of $101,000 and $94,000. He continues to see potential in significant developments like monetary expansion, Federal Reserve rate cuts, and the integration of crypto into 401(k) retirement plans, all of which showcase the enduring potential of cryptocurrencies.
“In the long run, honey badgers ignore global turmoil and restrictive trade conditions.” The resilience of investors focusing on long-term goals might offset this month’s selling pressures.
