The cryptocurrency market is experiencing a rollercoaster ride as Bitcoin’s price prediction for August suggests a possible drop to $48k-$53k before a surge. After starting the month with a bearish outlook, Bitcoin’s price has continued to decline, reaching around $63,981 during the early European session on Friday.
The overall crypto market has also followed suit, with the total market cap dropping to approximately $2.39 trillion. This downward trend has led to over $245 million being liquidated from the crypto derivatives market, primarily affecting long traders.
Despite the market turbulence, whales’ activity in Bitcoin remains high, with increased on-chain activities amid rising geopolitical tensions in the Middle East. Investors are seeking refuge in the crypto industry as global economic uncertainties continue to loom.
Recent data shows that US spot Bitcoin ETFs saw a net cash inflow of $50.64 million on Thursday, indicating continued interest in the digital asset. Additionally, companies like MicroStrategy are reaffirming their commitment to Bitcoin by planning to raise $2 billion for further purchases.
Looking ahead, CryptoQuant’s data suggests a possible consolidation period in the coming months before a bullish breakout to a new all-time high. Technical analysis indicates that Bitcoin’s price could drop to the $48k-$53k range before a potential surge.
The anticipated interest rate cut in the United States later this year, coupled with the upcoming general election, is expected to trigger a fresh crypto-bullish outlook. As the market continues to navigate through these uncertain times, investors are advised to stay informed and cautious in their trading decisions.
