Bloomberg News reports that Bitcoin has dropped after it attained its highest mark since mid-June on Saturday, giving rise to speculations that it is quite likely that the market may have rebounded from the worst.
The biggest digital token slid by as much as 2.4%, recording the figure at $23,247 on Monday after hitting on Saturday at $24,658, the highest since June 13th. In July, it registered a gain of 27%, considered the best since October. It was found that Ether also dropped after it posted a 70% jump in the previous month, the best since January 2021.
Antoni Trenchev, the co-founder and managing partner of Nexo, a crypto lender, stated that August appears to promise to manifest bouts of volatility which appears to be guaranteed. However, despite the same, he prefers to be leaning towards a repetition of the resilience manifested in July over the capitulation of June, after Bitcoin was found absorbing one or two macro punches of the last week of rate hikes of the Federal Reserve and data indicating that the US economy for a second consecutive quarter was found contracting.
Close By as Bitcoin Sits Around its 200-week Moving Average
Bitcoin has dropped below the $20,000 mark between late June and mid-July amidst concerns about inflation and a hike in rates. Aside from the same, some troubles are internal to the cryptocurrencies, including the Terra/Luna implosion of the ecosystem and Three Arrows Capital hedge funds.
Bloomberg News also reports that it is still well off the record high, with figures around $69,000 from November. However, it has started showing some strength in the light of economic indicators that are challenging and with stringent monetary policy.
Edward Moya, a senior market analyst, Oanda, said on Friday that it is quite likely that the so-called “crypto winter” might be over, and this is the need of the hour so that the flows get back into space.
